Directions: The following seven (7) items consist of two statements: one labelled as the 'Assertion (A)' and the other as 'Reason (R)'. You are to examine these two statements carefully and select the answers to these items using the codes given below: (a) Both A and R are individually true and R is the correct explanation of A; (b) Both A and R are individually true but R is not the correct explanation of A; (c) A is true but R is false; (d) A is false but R is true. 56.
- ABoth A and R are individually true and R is the correct explanation of A
- BBoth A and R are individually true but R is not the correct explanation of A
- CA is true but R is false
- DA is false but R is true
Explanation
The Assertion is true: the World Bank's Global Development Finance 2004 reclassified India as a "less indebted" country for 2002, reflecting improved debt-service ratios and foreign-exchange reserves. The Reason is false: India's outstanding external debt stock did not considerably reduce during the 1990s — it grew in absolute terms; the reclassification was about ratios, not a shrinking debt stock. Hence A is true but R is false.