Convertibility of rupee implies
being able to convert rupee notes into gold
allowing the value of rupee to be fixed by market forces
freely permitting the conversion of rupee to other currencies and vice versa
developing an international market for currencies in India
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC IAS – 2015
– Full convertibility means the currency can be freely exchanged for any purpose (trade, services, capital flows).
– Partial convertibility imposes restrictions on certain types of transactions, usually capital account transactions.
– India currently has full current account convertibility (for trade in goods and services) and partial capital account convertibility (restrictions apply to certain capital flows).