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UPSC 2015: Convertibility of rupee implies
(a)being able to convert rupee notes into gold
(b)allowing the value of rupee to be fixed by market forces
(c)freely permitting the conversion of rupee to other currencies and vice versa
(d)developing an international market for currencies in India
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Not attemptedCorrect Answer: (c) freely permitting the conversion of rupee to other currencies and vice versa
Currency convertibility refers to the freedom to exchange the domestic currency for foreign currencies (and vice versa) without quantitative restrictions. Options about gold, market-determined value, or creating a currency market do not capture this definition, making option (c) the only correct choice. ([drishtiias.com](https://www.drishtiias.com/current-affairs-news-analysis-editorials/news-editorials/2023-04-08?utm_source=openai))
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What is the correct answer to this UPSC 2015 Indian Economy question?▼
The correct answer is option (c): freely permitting the conversion of rupee to other currencies and vice versa. 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 2015, GS Paper 1, as Question 34. It falls under Indian Economy > External Sector & Balance Of Payments.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
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.