Given below are two statements, one is labelled as Assertion (A) and the other as Reason (R).
Assertion (A): The value of national currency determined by demand and supply of foreign currency is called flexible exchange rate.
Reason (R): Demand and supply of the foreign currency is being determined by the Central Bank.
Select the correct answer from the codes given below:
1
(A) is false, but (R) is true.
2
Both (A) and (R) are true, but (R) is not the correct explanation of (A).
3
Both (A) and (R) are true and (R) is the correct explanation of (A).
4
(A) is true, but (R) is false.