Step 1: Understanding Cut Motions
Cut Motions are powers vested in the members of the Lok Sabha to oppose a demand in the financial bill proposed by the government. They are a tool for ensuring financial accountability. There are three types of cut motions:
Step 2: Defining the Types of Cut Motions
\begin{enumerate}
Policy Cut Motion: This motion represents a complete disapproval of the policy underlying the demand. The motion states "that the amount of the demand be reduced to Re 1". If passed, it is tantamount to a no-confidence motion and the government is expected to resign.
Economy Cut Motion: This motion is moved to reduce the amount of the demand by a specific amount. The purpose is to highlight the possibility of economy in the proposed expenditure.
Token Cut Motion: This motion is moved to ventilate a specific grievance that is within the sphere of responsibility of the Government of India. It states "that the amount of the demand be reduced by Rs 100".
\end{enumerate}
Step 3: Answering the Question
The question specifically asks about a Policy Cut Motion. In this type of motion, the demand is sought to be reduced to Re 1 to symbolize complete disapproval of the policy.
Step 4: Final Answer
In a Policy Cut Motion, the demand is reduced to One Rupee. Therefore, option (A) is the correct answer.