Multiple choice

At present Indian Rupee is _______.

  1. partially convertible on current account

  2. fully convertible on current account

  3. partially convertible on capital account

  4. fully convertible on capital account

  5. fully convertible on current and capital account both
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Indian Rupee is fully convertible on the current account, meaning there are no restrictions on payments for current international transactions like trade, services, and income. However, it remains partially convertible on the capital account, with some restrictions on investments and capital flows to prevent volatility. This partial capital account convertibility is a deliberate policy choice.

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