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UPSC 2000: Consider the following statements: The Indian rupee is fully convertible I. in respect of Current Account of Balance of Payment. II. in respect of Capital Account of Balance of Payment. III. into gold. Which of these statements is/are correct?
(a)I alone
(b)III alone
(c)I and II
(d)I, II and III
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Not attemptedCorrect Answer: (a) I alone
Since August 1994, India has accepted IMF Article VIII, making the rupee fully convertible on the Current Account, while convertibility on the Capital Account remains restricted and there is no legal provision for conversion of rupees directly into gold. Hence only Statement I is correct. ([financialexpress.com](https://www.financialexpress.com/policy/economy/explainer-why-imf-calls-indias-forex-rate-regime-crawl-like/4062029/?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2000 Indian Economy question?▼
The correct answer is option (a): I alone. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this External Sector & Balance Of Payments question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2000, GS Paper 1, as Question 29. It falls under Indian Economy > External Sector & Balance Of Payments.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from External Sector & Balance Of Payments?▼
UPSC has asked 49 questions from External Sector & Balance Of Payments (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.