Question

Read the following statements - Assertion (A) and Reason (R):

Assertion (A) - Acquisition of a domestic (Indian) company by a foreign (Australian) company will be recorded on the credit side of the Balance of Payment Account.

Reason(R) - It leads to the outflow of foreign exchange from the domestic economy.

From the given alternatives choose the correct one:

Options

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

• Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is true but Reason (R) is false.

• Assertion (A) is false but Reason (R) is true.

Answer 1

Assertion (A) is true but Reason (R) is false.