Which of the following statement s about convertibility of rupee is correct 1 Indian Rupee is fully ...........

Economic Affairs Money Supply and Monetary Policy

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Which of the following statement/s about convertibility of rupee is correct?

1.Indian Rupee is fully convertible into foreign currency in Current Account

2.Indian Rupee is fully convertible into foreign currency in Capital Account

3.Indian Rupee is partially convertible into foreign currency in Current Account

4.Indian Rupee is partially convertible into foreign currency in Capital Account

Correct Code:

1 and 4 only

2 and 3 only

1 and 2 only

3 and 4 only

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Explanation:

1 and 4 only

Indian Rupee is fully convertible into foreign currency in Current Account: This statement is correct. Convertibility in the current account allows for the free exchange of currency for trade in goods and services, and the Indian Rupee is fully convertible in this regard.

Indian Rupee is fully convertible into foreign currency in Capital Account: This statement is incorrect. As of my last knowledge update in January 2022, the Indian Rupee is not fully convertible in the capital account. Capital account convertibility refers to the ability to convert domestic financial assets into foreign financial assets freely, and India has not adopted full capital account convertibility.

Indian Rupee is partially convertible into foreign currency in Current Account: This statement is not included in the given options.

Indian Rupee is partially convertible into foreign currency in Capital Account: This statement is incorrect as the Indian Rupee is not considered partially convertible in the capital account.

Therefore, the correct answer is "1 and 4 only."

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