WBCS.LIVE practice question

“Full convertibility of a rupee” means—

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Purchase of foreign exchange for rupees only
  2. Payment for imports in terms of rupees
  3. Repayment of loans in terms of rupees
  4. Determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply.

Correct answer and explanation

Correct answer: Determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply.