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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. (2 marks)
Reasoning (R) : Capital Account convertibility is necessary for faster growth and development of economy and it makes foreign exchange rate more stable.
(A) is correct but (R) is not correct.
(A) and (R) both are correct and (R) is the right explanation of (A).
(A) and (R) both are correct but (R) is not the right explanation of (A).
Both (A) and (R) are incorrect.
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