Assertion (A): Capital Account convertibility is introduced only sometime after the introduction of convertibility on current account when exchange rate of currency of a country is relatively stable.

Reason (R): Capital Account convertibility is necessary for faster growth and development of economy and it makes foreign exchange rate more stable.

Codes:

A

(A) is correct but (R) is not correct
B

(A) and (R) both are correct and (R) is the right explanation of (A)
C

(A) and (R) are correct but (R) is not the right explanation of (A)
D

Both (A) and (R) are incorrect.

Question