Direction : In the question given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A) Foreign investment is an important component of capital account.
Reason (R) Foreign investment has two sub-components in BoP account such as FDI and portfolio investment.
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