Capital account convertibility means: MCQ with Answer and Explanation

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Capital account convertibility means:

A. free conversion of the rupee for current account transactions only

B. abolition of all capital controls

C. free conversion of the rupee into foreign currency for capital account transactions

D. fixed exchange rate

Answer: Option C

Solution (By JKSSB Mock Tests)

Capital account convertibility allows free conversion of the rupee for capital account transactions.

This question belongs to: Economy GK Economy Set 1

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Question #1

In the context of economic growth models, the Harrod-Domar model emphasises:

A. Only natural resource endowment

B. The role of savings rate and capital-output ratio in determining growth

C. Only labour force growth

D. Only technological progress

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Correct Answer: Option B

Explanation:
The Harrod-Domar model states that the growth rate of output depends on the savings rate and the capital-output ratio (or the productivity of capital).

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Foreign Portfolio Investor' route in India is regulated by:

A. PFRDA

B. RBI only

C. SEBI

D. IRDAI

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Correct Answer: Option C

Explanation:
Foreign Portfolio Investors are regulated by SEBI.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on health care services is:

A. 0%

B. 18%

C. 5%

D. exempt

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Correct Answer: Option D

Explanation:
Health care services are exempt from GST.

This question belongs to: Economy GK Economy Set 1

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