Question

Which of the following best describes Capital Account Convertibility ?

A Freedom to convert domestic currency into foreign currency for trade in goods and services only
B Freedom to convert domestic currency into foreign currency for all types of transactions, including capital assets and investments
C Restriction on the use of foreign exchange for current account transactions
D Policy allowing only NRIs to invest in domestic markets without restrictions
E A measure used to control inflation through monetary policy
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)