Q. Which of the following refers to the Capital Account Convertibility of the Indian Rupee?
Answer: that the Indian Rupee can be exchanged for any major currency for the purpose of trade in goods and services
Notes: Capital account convertibility (CAC) means the freedom to convert local financial assets into foreign financial assets and vice versa at market determined rates of exchange. This implies that Capital Account Convertibility allows anyone to freely move from local currency into foreign currency and back.