CA Inter P2 · Chapter 13 · Question 1 of 10
The Foreign Exchange Management Act, 1999 was enacted to consolidate and amend the law relating to foreign exchange with the objective of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Facilitating external trade and payments and promoting the orderly development and maintenance of the foreign exchange market in India
Explanation
The preamble of FEMA states that it is an Act to consolidate and amend the law relating to foreign exchange, with the objective of facilitating external trade and payments and promoting the orderly development and maintenance of the foreign exchange market in India. It replaced the more restrictive Foreign Exchange Regulation Act, 1973.
More The Foreign Exchange Management Act, 1999 MCQs
- Q3Ms. Laura, a foreign national, came to India purely on a long holiday and stayed for 200 days during the preceding financial year. She has…
- Q4Which of the following is a current account transaction under section 2(j) of FEMA?
- Q5Under section 2(e) of FEMA, a 'capital account transaction' means a transaction which alters:
- Q6Under section 2(n) of FEMA, 'foreign exchange' includes:
- Q7Under section 2(c) of FEMA, an 'authorised person' means: