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)- Loans taken by India from the rest of the world is a stock concept.

Reason (R)- Stock variables are those variables whose quantity is measured at a particular point of time.

Both (A) and (R) are true and (R) is the correct explanation.

The correct answer is option 1: Both (A) and (R) are true and (R) is the correct explanation of A.

Assertion (A): Loans taken by India from the rest of the world is a stock concept. This statement is TRUE. A stock concept refers to a quantity measured at a particular point in time. In the context of loans taken by India from the rest of the world, this represents the total amount of loans that India owes to foreign entities at a specific moment in time. These loans accumulate over time and form a stock of debt owed by India to other countries or international institutions.

Reason (R): Stock variables are those variables whose quantity is measured at a particular point of time. This statement is also TRUE. This statement defines the concept of stock variables. Stock variables are quantities that are measured at a specific point in time, contrasting with flow variables which are measured over a period of time. Examples of stock variables include the amount of money in a bank account, the total population of a country, or in this case, the total amount of loans taken by a country from the rest of the world.

Reason (R) correctly explains why Assertion (A) is true. The fact that stock variables are measured at a particular point in time aligns with the assertion that loans taken by India from the rest of the world are a stock concept. Therefore, Option 1 is the correct choice.