If all the foreign currency transactions expect those for creating or liquidating foreign assets /liabilities are free from any type of restrictions it is called as _________________.

Full convertibility

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Capital account convertibility

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Current account convertibility

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Both (B) and (C) above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D Current account convertibility
The convertibility on current account means that there are no restrictions on transacting foreign currency on current account. In other words, it means that all the foreign currency transactions except those for creating or liquidating foreign assets/liabilities are free from any type of restrictions.

Suggest Corrections