India achieved full convertibility on the current account in which year? MCQ with Answer and Explanation

India achieved full convertibility on the current account in which year?
A. 1993
B. 1994
C. 2000
D. 1991
Answer: Option B
Solution (By JKSSB Mock Tests)
India achieved full current account convertibility in August 1994.

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Practice More Economy Set 1 Questions

Question #1
Frictional unemployment is best described as:
A. temporary unemployment during job search or transition
B. long-term unemployment due to skill mismatch
C. unemployment due to lack of demand
D. unemployment due to seasonal agriculture

Correct Answer: Option A


Explanation:
Frictional unemployment is temporary unemployment during job search or transition.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a feature of the 'Life-Cycle' and 'Permanent-Income' hypotheses taken together?
A. Both ignore the role of wealth
B. Both assume infinite horizons only
C. Both emphasise that consumption depends on long-run resource constraints rather than current income alone
D. Both claim that only current income matters

Correct Answer: Option C


Explanation:
Both the life-cycle hypothesis and the permanent-income hypothesis assert that forward-looking consumers base consumption on expected lifetime or permanent resources rather than on current income alone.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is NOT a source of non-tax revenue for the government of India?
A. Dividends from PSUs
B. Corporation tax
C. Interest receipts
D. Fees and fines

Correct Answer: Option B


Explanation:
Corporation tax is a tax revenue. Interest receipts, dividends from public sector undertakings, and fees and fines are non-tax revenues.

This question belongs to: Economy GK Economy Set 1