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Question
Convertibility of rupee implies:
Options:
A .  allowing the value of rupee to be fixed by market forces
B .  being able to convert rupee notes into gold
C .  freely permitting the conversion of rupee to other currencies and vice versa
D .  developing an international market for currencies in India
Answer: Option C
Answer: (c)
Convertibility of rupee implies freely permitting the conversion of rupee to other currencies and vice versa.
Currency Convertibility is the ease with which a country’s currency can be converted into gold or another currency.

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