Question

Consider the following statements about rupee convertibility.
$1$. Rupee convertibility means the ease with which rupee can be converted into another currency.
$2$. Rupee is fully convertible on current account.
$3$. Rupee is fully convertible on capital account.
Which of the given statements is/are correct?

• A. $1$ and $2$
• B. $2$ and $3$
• C. $1$ and $3$
• D. $1,2$ and $3$

Answer 1

The correct option is A $1$ and $2$

Rupee convertibility is the ease with which the rupee can be converted into another currency at the market exchange rate. It can be on current account and capital account. At present India has full current account convertibility and partial capital account convertibility.