What is meant by the full convertibility of the Rupee ........

Indian Economy (Easy) External Sector

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What is meant by the full convertibility of the Rupee?

Rupees could be converted into all world currencies

The government withdrew all operations in connection with control over the Rupee.

Rupee conversion into foreign currencies and vice versa was subjected to market forces

None of the above

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Explanation:

full convertibility of rupee means right of a resident to convert rupee into foreign currency and vice versa for all purposes – both current account transactions and capital account transactions. In India, there is only partial convertibility as several restrictions are there for capital account convertibility.