Capital Account Convertibility of the Indian Rupee implies ........

Economic Affairs Foreign Trade - Trends and Policy

Download Solution PDF

Capital Account Convertibility of the Indian Rupee implies

that the Indian Rupee can be exchanged by the authorised dealers for travel

that the Indian Rupee can be exchanged for any major currency for the purpose of trade in goods and services

that the Indian Rupee can be exchanged for any major currency for the purpose of trading financial assets

None of the above

छोटे Courses बड़े Results

Master Foreign Trade - Trends and Policy

Prepare through Micro-courses

Try Now

Explanation:

Capital account convertibility means free conversion of cross-border capital flows. Any entity can convert domestic currency into hard currency at the prevailing market rate and take hard currency out of the country without the need of offering any explanation.

NOTE: Current account deals with trade in goods and services.

Capital account include foreign investment and loans, banking and other forms of capital, as well as monetary movements or changes in the foreign exchange reserve.