Question

Assertion (A): Loan taken for the development of imagation facilities is a productive debt.

Reason (R): Funding of war with loans is considered an unproductive debt.

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

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

Explanation:

The Assertion is true because a loan for the development of irrigation infrastructure is a productive debt because it generates productive assets, boosts agricultural output, and promotes economic development. The reason is also true: loans used to fund war expenditures are deemed unproductive debt because they do not generate income. However, the argument provides an example of unproductive debt without explaining why an irrigation loan is productive debt. As a result, the reason is not an accurate explanation of the assertion.