A
A statutory transfer of capital by a foreign worker to their home country.
B
A transaction involving foreign exchange that alters foreign assets or liabilities.
C
A mandatory reporting protocol exclusively handled by the Ministry of Finance.
D
A transaction involving foreign exchange that does not alter foreign assets or liabilities.
Correct answer: (d) A transaction involving foreign exchange that does not alter foreign assets or liabilities.
Explanation
Option D is correct because a current account transaction is defined as a transaction involving foreign exchange that does not alter foreign assets or liabilities. Option B describes a capital account transaction, and options C and D do not accurately define the term under FEMA.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.