Statement I: Capitalism is based on trust.
Statement II: Capitalism is often confused with democracy.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Democracy

A form of government in which power is vested in the people and exercised by them directly or through freely elected representatives.

Capitalism

An economic system in which private individuals or businesses own capital goods and the production of goods and services is based on supply and demand in the market.