Consider the following statements.
Assertion (A): Taking of deposits and granting of loans single out banks.
Reasoning (R): Banks act as intermediaries when they mobilize savings from surplus units to shortage units in order to finance productive activities.

A. Assertion (A) is correct and Reasoning (R) is the correct explanation of (A)

B. Both Assertion (A) and Reasoning (R) are correct but (R) is not the correct explanation of (A)

C. Assertion (A) is correct but Reasoning (R) is incorrect

D. Reasoning (R) is correct but Assertion (A) is incorrect

Answer: Option A