Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

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)- In the year 1994, India met with an economic crisis relating to its external debt.

Reason (R)- In the economic crisis, the government was unable to make repayment of loans from abroad and the foreign exchange reserves were also dropped to the levels that were not sufficient for even a fortnight.

Options:

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

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

(A) Is true but (R) is false.

(A) Is false but (R) is true.

Correct Answer:

(A) Is false but (R) is true.

Explanation:

The economic crisis which India faced was in the year 1991 and not 1994.