Assertion (A): If the receipts and payments on the current account are equal to each other, it
depicts a situation of Current Account Surplus,
Reason(R): A surplus current account means that the nation is a lender to other countries and a
deficit current account means that the nation is a borrower from other countries.
O
Both Assertion (A) and Reason (R)
are true and Reason (R) is the
correct explanation of Assertion (A).
O
Both Assertion (A) and Reason (R)
are true and Reason (R) is not the
correct explanation of Assertion (A).
O
Assertion (A) is true but Reason
(R)is false,
O
Assertion (A) is false but Reason
(R)is true.
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