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    Question

    Transactions altering assets and liabilities in India of

    residents outside India:
    A Capital account transactions Correct Answer Incorrect Answer
    B Current account transactions. Correct Answer Incorrect Answer
    C Either a or b Correct Answer Incorrect Answer
    D Both a and b. Correct Answer Incorrect Answer
    E Foreign account transactions. Correct Answer Incorrect Answer

    Solution

    As per s.2(e)of the FEMA Act, 1999- “capital account transaction” means a transaction which alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India or assets or liabilities in India of persons resident outside India, and includes transactions referred to in sub-section (3) of section 6;

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