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Question

Choose the correct option.

Assertion: The external debt of India has been showing a decreasing trend over the past decade.

Reason: Increase in population and expenditure for development and social welfare activities have decreased the external debt.

A
Both the Assertion and the Reason are correct, and the Reason is the correct explanation of the Assertion.
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B
Both the Assertion and the Reason are correct, but the Reason is not the correct explanation of the Assertion.
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C
The Assertion is false, but the Reason is true.
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D
Both the statements are false.
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Solution

The correct option is D Both the statements are false.
India's external debt has been increasing over the years. The reasons for this rising debt could be an increase in population and, therefore, an increase in development and social welfare activities. It could also be because of some other reasons, such as increase in defence expenditure.

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