WBCS.LIVE practice question

What does the 'FEMA' stand for in the Indian economy?

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

Answer options

  1. Foreign Export Monetary Authority
  2. Federal Economy Management Agency
  3. Foreign Exchange Management Act
  4. Financial Exchange Monitoring Act

Correct answer and explanation

Correct answer: Foreign Exchange Management Act

Explanation: āœ… Correct Answer: C) Foreign Exchange Management Act šŸ“š Explanation: FEMA stands for the Foreign Exchange Management Act, which was passed by the Indian Parliament in 1999. It completely replaced the older, much stricter Foreign Exchange Regulation Act (FERA). FEMA was heavily designed to facilitate external trade and payments and promote the orderly development of the foreign exchange market in a liberalized India.