Capital account convertibility means: MCQ with Answer and Explanation

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Capital account convertibility means:

A. abolition of all capital controls

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

C. fixed exchange rate

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

Answer: Option D

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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Practice More Economy Set 1 Questions

Question #1

The 'Bank for International Settlements' was established in which year?

A. 1930

B. 1944

C. 1971

D. 1919

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Correct Answer: Option A

Explanation:
The Bank for International Settlements was established in 1930.

This question belongs to: Economy GK Economy Set 1

Question #2

The term 'Most Favoured Nation' treatment under WTO implies:

A. Higher tariffs for all members

B. Preferential treatment to one country at the expense of others

C. Complete free trade without any rules

D. Non-discriminatory treatment among all member countries

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Correct Answer: Option D

Explanation:
The MFN principle requires that any trade advantage granted to one WTO member must be extended to all other members, ensuring non-discrimination.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax Network' was created as a:

A. government department

B. special purpose vehicle

C. statutory body

D. constitutional body

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Correct Answer: Option B

Explanation:
GSTN was created as a special purpose vehicle to provide IT infrastructure for GST.

This question belongs to: Economy GK Economy Set 1

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