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Option is C correct: Allowing full currency convertibility in both the Capital Account and Current Account would Ensure easy movement of the Foreign Portfolio Investments in the Indian market. They would invest during the periods of growth while withdrawing by immediately converting their assets during the periods of slowdown. This ease of investment and withdrawal depending upon the economic situation of a country can cause fluctuations in its exchange rates and would increase the problems of volatility witnessed in a currency exchange rate. On the other hand, The problems of Non-Performing Assets would be better dealt with if there is full convertibility as greater investments by FPIs would cause corporates to pay back the loans on time. Investors are more inclined to invest in the regions where the convertibility norms are relaxed. Similar is true for the companies. Relaxation in currency convertibility norms would discourage companies from shifting their profits to tax havens.
Where is the Mudumalai Tiger Reserve located?
Recently 16th commemoration of Parliament attack was observed. This attack was conducted on:
The thirty-first meeting of the Monetary Policy Committee (MPC), constituted under section 45ZB of the Reserve Bank of India Act, 1934, will be held from?
1. Who among the following was the founder of India's first girl's school in Pune, which was set up long back in 1848?
Which of the following is NOT a cold ocean current?
Which of these is a famous traditional craft of Himachal Pradesh?
Recently Goods and Service Tax (GST) was introduced in India and came into effect from 1st July 2017.Which of these countries was the firs...
In a certain code language, PRECIOUS is written as KIVXRLFH and CLEAR is written as XOVZL. How will DIRTYING be written in the same language?
Which Indian state recently celebrated its 56th liberation day to commemorate its independence from Portugese rule
The most important fishing grounds of the world are found in the regions where: