Question

Read the following statements -Assertion (A) and Reason(R), choose one of the correct alternatives given below:

Assertion (A): Trade of invisible items between two nations is a part of capital account of Balance of Payment

Reason(R): Transactions that affect the asset-liability status of a country in relation to the rest of the world are known as Capital Account transactions.

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 false but Reason (R) is true.