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 ?

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Submitted by examrobotsa on

Q: 29 (IAS/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 ?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,156,115,156,34,30,51

keywords: 

{'capital account': [1, 1, 0, 1], 'indian rupee': [0, 0, 0, 1], 'balance': [0, 0, 1, 1], 'payment': [0, 1, 1, 8], 'current account': [0, 0, 0, 1]}

The correct statement regarding the convertibility of the Indian rupee is:

I. The Indian rupee is fully convertible in respect of the Current Account of the Balance of Payments.

Statement II is incorrect because the Indian rupee is not fully convertible in respect of the Capital Account of the Balance of Payments. There are certain restrictions on capital account transactions in India.

Statement III is also incorrect because the Indian rupee is not convertible into gold. The convertibility of the Indian rupee is primarily related to international trade and transactions, not the conversion into gold.

Therefore, the correct answer is: I alone.