Question

Assertion (A) When there is a trade deficit and current account deficit, there will always be BOP deficit.
Reason (R) When there is a trade deficit and current account deficit but a capital account surplus (i.e., net capital inflow), there may be Balanced BOP or BOP surplus.
Read the following statements-Assertion (A) and Reason (R), and select the correct alternative
in each case.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason ® is not the correct explanation of
Assertion (A)
(c) Assertion (A) is true but Reason (R) false.
(d) Assertion (A) is false but Reason (R) is true.

Answer 1

Answer:

OPTION A IS THE ANSWER

Explanation:

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of