Answer: Option D
Answer: (d)
A currency is said to be convertible when it can be freely exchanged for another currency at market rates.
Transaction of current account includes dealing with payments relating to foreign trade, travel and other services. Capital account deals with transactions in financial assets.
While India has made the Indian rupee fully convertible on the current account, it is yet to accept capital account convertibility as a goal.
Broadly, capital account convertibility would mean freedom for firms and residents to freely buy into overseas assets such as equity, bonds, property, and acquire ownership of overseas firms besides free repatriation of proceeds by foreign investors