Direction: Choose the correct alternatives from the following options as given below for the Assertion (A) and Reason (R).
Assertion (A): It is wrong to blame the economic policies of India for the unprecedented depreciation of the Indian rupee. Indian rupee falls to a record low against US Dollar owing to the increased demand for US Dollar in the international market.
Reason (R): During the pandemic, the US government provided fiscal stimulus to keep the economy on track. The increased demand paved the way for inflation. The US government responded to the inflation by increasing interest rates, consequently, many investors around the globe withdrew their money from other economies and invested in the US economy to earn better profit.
1
Both (A) and (R) are true and (R) is the correct explanation of (A).
2
Both (A) and (R) are true but (R) is not the correct explanation of (A).
3
(A) is true but (R) is false.
4
(A) is false but (R) is true.
5
Both (A) and (R) are false.