A) convertibility of the rupee will stabilise its exchange value against major currencies of the world
B) it will attract more foreign capital inflow in India
C) it will help promotion of exports
D) it will help India secure loans from the world financial markets on attractive terms
Correct Answer: D
Solution :
[d] Convertibility refers to the freedom of the holder of a currency to freely convert it into any other foreign convency. The current account convertibility is largely restricted to exports and imports, though certain associated aspects are also permitted under it like remittances (what Indians living abroad send to their friends and relatives in India). Convertibility for investment and borrowing abroad comes under capital account convertibility. Tarapore Committee recommended for full account convertibility that is both current and capital account convertibility. Presently in india there is only current account convertibility.
You need to login to perform this action.
You will be redirected in
3 sec
