Question

Assertion (A): Exports of goods and services from India to USA would mean inflow of foreign exchange into India.

Reason (R): Foreign exchange arising due to receipts from exports of goods and service flows from USA to India.

Options

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

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

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

• Both Assertion (A) and Reason (R) are false.

Answer 1

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation for Assertion (A).

Explanation:

Exports to the USA generate receipts and foreign-exchange inflow for India. The Reason directly explains the Assertion by tracing the foreign exchange from the USA to India.