The Foreign Exchange Management Act (FEMA) was enacted in 1999 to replace the earlier FERA law. In which year did FEMA officially come into force?
2000
The Foreign Exchange Management Act (FEMA) was passed by Parliament in 1999 to replace the older and more rigid Foreign Exchange Regulation Act (FERA) of 1973.
Although the Act was enacted in 1999, it was actually brought into effect from 1 June 2000.
FEMA aimed at facilitating external trade and payments and promoting the orderly development of the foreign exchange market in India.
Hence, FEMA officially came into force in the year 2000.
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Important Questions from External Sector and Currency Exchange rate
Consider the following :
1. Foreign currency convertible bonds
2. Foreign institutional investment with certain conditions
3. Global depository receipts
4. Non-resident external deposits
Which of the above can be included in Foreign Direct Investments?
Procedure for online trading involve(s) which of the following step(s)?
I. Make an application to open a Demat Account and Online Trading Account.
II. Allocate funds from the bank account to the trading account.
III. Once the order is confirmed, it is placed in the stock exchange through the online trading system.
What is the idea that a country should be self-sufficient and not participate in international trade called?
According to Harrod-Domar growth model for the full capacity use of capital and labour or for full employment it is necessary that
When the exchange rate changes from 1$ = Rs. 72 to 1$ = Rs. 68, then the:
A. Rupee has depreciated
B. Dollar has depreciated
C. Rupee has appreciated
D. Dollar has appreciated
Choose the correct answer from the options given below:
