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.
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2026 · Q57 · General Studies · 2 marks
Consider the following statements about the provisions pertaining to the Scheduled Castes and the Scheduled Tribes in India: 1. Provisions regarding the administration of the Tribal Areas in the States of Assam, Meghalaya, Tripura and Mizoram are given in the Fifth Schedule of the Constitution of India. 2. Some tribes of India are entitled to exemption from paying Income Tax on certain incomes. 3. The Constitution of India provides for reservation of seats in Panchayats for women belonging to the Scheduled Castes and the Scheduled Tribes. Which one of the following conclusions based on the above statements is correct? -
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