Given below are two statements, one labelled as Assertion (A

Economics

M: +2.00/-0.33

Given below are two statements, one labelled as Assertion (A) and the other as Reason (R).

Assertion (A) : When the payments made by a country exceeds its receipts from trade of goods, services, transfer and net income, is called Current Account Deficit (CAD).

Reason (R) : Current Account Deficit (CAD) occurs when a country exports more goods, services and capital.

Choose the correct answer from the code given below.

Code :

U.P. R.O./A.R.O. (Re-Exam) (Pre) 2016

[External Sector - Trade, FDI, Debt]

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

Both (A) and (R) are true, but (R) is not the correct explanation of (A)

(A) is true, but (R) is false

(A) is false, but (R) is true

EXPLANATION

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