In the question given below, there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.

Assertion (A)- Real flow refers to the flow of goods and services across different sectors of the economy.

Reason (R)- Nominal or money flow is the flow of factor payments and payments of goods and services between households and firms.

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

The correct answer is Option 2: Both (A) and (R) are true but (R) is not the correct explanation of (A).

Explanation:

• Assertion (A) is true because real flow refers to the actual movement of goods and services between different sectors, such as households and firms.
• Reason (R) is also true, as nominal or money flow refers to the movement of monetary payments (factor payments, wages, rent, etc.) in exchange for goods and services between households and firms.

However, R does not explain A because they refer to two different concepts—real flow involves physical goods and services, while money flow refers to the financial transactions that facilitate these exchanges.