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Question

Data Interpretation & Logical Reasoning (DILR) Question on Assertion and Reason

Assertion (A) : Capital flight is the major problem of free floating exchange rate system.
Reason (R) : Capital flight occurs due to change in the interest rates.

A

Both A and R are true and R is the correct explanation of A

B

Both A and R are true and R is not the correct explanation of A

C

A is true, but R is false

D

A is false, but R is true

Answer

Both A and R are true and R is not the correct explanation of A

Explanation

Solution

The correct option is (B): Both A and R are true and R is not the correct explanation of A