Given below are two statements, one labeled as Assertion (A) and the other as Reason (R):
Assertion (A): When the payments made by a country exceed its receipts from the trade of goods, services, transfer, and net income called Current Account Deficit (CAD).
Reason (R): Current Account Deficit (CAD) occurs when a country exports more goods, services, and capital.
Choose the correct answer from the codes given below:
1
Both A and R are true and R is the correct explanation of A
2
Both A and R are true and R is not the correct explanation of A
3
A is true but R is false
4
A is false but R is true