The Indian Rupee is fully convertible on the Current Account of the Balance of Payments, which means there are no restrictions on transferring funds for international trade in goods and services, income, and unilateral transfers. However, it is not fully convertible on the Capital Account, meaning there are restrictions on the movement of capital (investments, loans, etc.) into and out of the country. The Rupee is not convertible into gold through any official mechanism; gold prices are market-determined.
Consider the following statements: The Indian rupee is fully convertible I. in respect of Current Account of Balance of Payment. II. in respect of Capital Account of Balance of Payment. III. into gold. Which of these statements is/are correct?
Asked in UPPCS Prelims 2000 · Topic: Current Account and Capital Account (Current Account: Definition and Components)
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