Assertion (A) : India’s balance of payments is always in disequilibrium. Reason

(R) : The demand for foreign exchange is more than its supply.

Codes :

  1. Both (A) and (R) are correct and (R) is the correct explanation of (A)
  2. Both (A) and (R) are correct but (R) is not the correct explanation of (A)
  3. (A) is correct but (R) is incorrect
  4. (A) is incorrect but (R) is correct
1. Both (A) and (R) are correct and (R) is the correct explanation of (A)

The import in India is more than exports from India, this is the reason why the balance of payment remains in disequilibrium and the e demand for foreign exchange is more than its supply

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