Read the following statements carefully and choose the correct option regarding Assertion (A) and Reason (R). Assertion (A): India had to approach the IMF and World Bank in 1991 for a bailout loan. Reason (R): Foreign exchange reserves had declined to the point that they could barely finance two weeks of imports.
Both A and R are true and R is the correct explanation of A.
Both statements are factually correct and R correctly explains A. India's forex reserves fell critically — to barely two weeks of import cover by mid-1991. This acute shortage directly caused India to approach the IMF (which provided a .2 billion loan) and the World Bank for emergency assistance. Hence, Both A and R are true and R is the correct explanation of A.
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