Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R.
Assertion (A): Sustained current account surplus encourages the government to liberalize imports and capital movements.
Reasons (R): The current account and balance of payments positions of a country can significantly influence its economic policies.
In the light of the above statements, choose the correct answer from the options given below:
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