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Question No. 295Interactive Test Mode
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Q295. The Capital Account Convertibility of the Indian Rupee implies:

The Capital Account Convertibility of the Indian Rupee implies:

Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 1998 • Indian Economy

Correct Answer: Option (C) — that the Indian Rupee can be exchanged for any major currency for the purpose of trading financial assets

Concept & Option Breakdown

Standard Reference Verified

Capital Account Convertibility (CAC) refers to the freedom to convert domestic financial assets into foreign financial assets and vice versa at market-determined exchange rates without regulatory restrictions.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 1998 (Q295)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (C) — that the Indian Rupee can be exchanged for any major currency for the purpose of trading financial assets

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Frequently Asked Questions — UPSC Prelims 1998 Q295

What is the official answer for UPSC Prelims 1998 GS Paper I Question 295 (Indian Economy)?

The official UPSC answer key for this 1998 Indian Economy (Indian Economic Planning & Growth) question is Option (C): "that the Indian Rupee can be exchanged for any major currency for the purpose of trading financial assets". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 1998 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

To solve Indian Economic Planning & Growth questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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