Practicing Success
Read the following statements - Assertion (A) and Reason (R): |
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. |
Assertion (A) is true but Reason (R) is false. |
When there is a trade deficit, the current account may not necessarily be in deficit and even if current account is also in deficit, the capital account may be in surplus or deficit. So the BoP balance may either be surplus, deficit or balanced depending on balances of current and capital accounts. |