Assertion (A): A planar circular coil of area \(A\) and current \(I\) is equivalent to magnetic dipole of dipole moment \(M = IA\).
Reason (R): At large distances, magnetic field of circular loop and magnetic dipole is same.
Assertion (A) is true. The magnetic dipole moment \(M\) of a current loop with area \(A\) and current \(I\) is indeed given by \(IA\). Reason (R) is also true. At large distances, the magnetic field produced by a circular current loop is identical to the field of an ideal magnetic dipole with moment \(IA\). Reason (R) provides the correct explanation for Assertion (A) as this equivalence is the basis for the definition of the magnetic dipole moment.