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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 [R] is not the correct explanation of Assertion [A]
See AlsoBalance of Payment (BOP): Definition, Types and ImportanceBalance of Payments (BoP)Balance of payments always balances in an accounting sense.TrueFalseCan't sayVaries between countriesWhat is the balance of payments? : 日本銀行 Bank of JapanC) Assertion [A] is true, but Reason [R] is false
D) Assertion [A] is false, but Reason [R] is true
Correct Answer: A
Solution :
Balancing BoP means bringing it to the state of equilibrium by the way of inflow or outflow of currency in accommodating items. This ensures a stable economic condition in the economy.
See AlsoFinancial Account (BoP)
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