Multiple choice

Directions: Two statements are given below, one labelled as Assertion (A) and the other labelled as Reason (R). You are to examine these two statements carefully and decide if the Assertion (A) and the Reason (R) are individually true and if so, whether the reason is a correct explanation of the Assertion. Select your answer to these items using the codes given below.

Assertion (A) : India foreign trade has been experiencing heavy growth rate during the past two years. Reason (R) : Indian currency has been devalued against the world`s major currencies.

  1. Both A and R are true and R is the correct explanation of A.

  2. Both A and R are correct but R is not the correct explanation of A.

  3. A is true but R is false.

  4. A is false but R is true.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the early 1990s, India experienced significant trade growth following economic reforms and the 1991 currency devaluation. While devaluation makes exports more competitive, trade growth is also driven by liberalization and global demand, so R is a factor but not the sole explanation for overall trade growth.

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