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    Question

    Currently India has full convertibility in:

    A Current Account Correct Answer Incorrect Answer
    B Capital Account Correct Answer Incorrect Answer
    C Both Correct Answer Incorrect Answer
    D None Correct Answer Incorrect Answer
    E Difficult to say Correct Answer Incorrect Answer

    Solution

    Currently India has full Current Account Convertibility. But there is no full Capital Account Convertibility yet. There are some restriction in capital account transactions like taking loan from abroad, investing in India etc. External Commercial Borrowing (ECB) is regulated in India. Similarly there are some regulations regarding FDI like real estate sector does not allow FDI investment at all.

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