Multiple choice

Directions: The following item consists of two statements, 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's 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 true 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

India's foreign trade has seen growth, and currency devaluation can influence trade, but the growth is driven by multiple factors like global demand and policy changes, not solely devaluation. Both statements are generally considered true in economic contexts, but the reason is not the sole explanation.

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