Assertion (A): India could not repay its foreign debt in 1991.
Reason (R): India's foreign exchange reserves had run down to very low levels.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

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CorrectNot quiteAnswer A

Correct answer: A

Foreign debt is repaid in foreign currency; with almost no reserves, India could not pay.
R explains A.

Concept: The 1991 crisis
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The rule this testsThe 1991 crisis

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Ten questions from Economic Reforms since 1991 (LPG), at your own pace.

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Assertion (A): India could not repay its foreign debt in 1991.Reason (R): India's foreign exchange reserves had run down to very low levels.

Explanation

Assertion (A): India could not repay its foreign debt in 1991.
Reason (R): India's foreign exchange reserves had run down to very low levels.