| Assertion [A] During the Asian crisis, many countries foresaw the vulnerability to the external shocks and accumulated heavy foreign exchange reserves. |
| Reason [R] India devalued its currency during the 1990 to improve its export competitiveness |
A) Assertion [A] is true and Reason [R] is a correct reason of Assertion [A].
B) Assertion [A] is true and Reason [R] is not a correct reason of Assertion [A].
C) Assertion [A] is false, but Reason [R] is true
D) Both are false
Correct Answer: B
Solution :
Devaluation of currency makes domestic goods cheaper in international market, hence exports from domestic country increases.
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