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International Relations·Easy

Which of the following indicates/indicate that a currency is convertible? 1. It can be freely exchanged for a foreign currency. 2. There is no restriction for its use in a foreign country. Select the correct answer using the code given below:

Which of the following indicates/indicate that a currency is convertible?

1. It can be freely exchanged for a foreign currency.

2. There is no restriction for its use in a foreign country.

Select the correct answer using the code given below:

Options

  1. a.

    1 only

  2. b.

    2 only

  3. c.

    Both 1 and 2

    Correct answer
  4. d.

    Neither 1 nor 2

Explanation

Convertibility basically means to treat a foreign currency the same as the domestic currency, both in domestic and overseas markets.

It means absence of restrictions from the government on conversion of currency and also on its end use.

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