AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Option A — Both (A) and (R) are true and (R) is the correct explanation of (A).
The passage states that "The Bretton Woods system inaugurated an era of unprecedented growth of trade and incomes," directly linking fixed exchange rates and stable monetary cooperation to the 8% trade growth and 5% income growth.
The source passage explicitly says the Bretton Woods system (based on fixed exchange rates) inaugurated the era of high trade and income growth — making (R) a direct and correct explanation of (A). Both statements are factually accurate and causally connected, so option A is correct. Watch for assertion-reason questions where the textbook itself states a causal link — that confirms (R) is the correct explanation, not merely a true but unrelated fact.