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0. Assertion (A): Private foreign capital lends to flow to the high-profit areas rather than to the priority sectors. Reasoning (R): One of the important limitations to utilizing foreign capital is the absorptive capacity of the recipient country.
(A) and (R) both are correct and (R) is the correct explanation of (A).
(A) and (R) both are correct but (R) is not the correct explanation of (A).
(A) is correct whereas (R) is incorrect.
(R) is correct whereas (A) is incorrect.
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