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Permitted Activities under Foreign Exchange Law

Description: Test your knowledge on Permitted Activities under Foreign Exchange Law.
Number of Questions: 14
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Tags: foreign exchange law permitted activities
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Which of the following is a permitted activity under the Foreign Exchange Law?

  1. Export of goods and services

  2. Import of goods and services

  3. Foreign direct investment

  4. All of the above

Show answer
Correct Option: D
Explanation:

Export of goods and services, import of goods and services, and foreign direct investment are all permitted activities under the Foreign Exchange Law.

What is the limit on the amount of foreign exchange that an individual can hold in India?

  1. $250,000

  2. $500,000

  3. $1,000,000

  4. There is no limit

Show answer
Correct Option: D
Explanation:

There is no limit on the amount of foreign exchange that an individual can hold in India.

What is the limit on the amount of foreign exchange that a company can hold in India?

  1. $500,000

  2. $1,000,000

  3. $2,000,000

  4. There is no limit

Show answer
Correct Option: D
Explanation:

There is no limit on the amount of foreign exchange that a company can hold in India.

What is the procedure for obtaining permission to import goods into India?

  1. File an application with the Reserve Bank of India

  2. Obtain a license from the Directorate General of Foreign Trade

  3. Both of the above

  4. None of the above

Show answer
Correct Option: C
Explanation:

To import goods into India, one must file an application with the Reserve Bank of India and obtain a license from the Directorate General of Foreign Trade.

What is the procedure for obtaining permission to export goods from India?

  1. File an application with the Reserve Bank of India

  2. Obtain a license from the Directorate General of Foreign Trade

  3. Both of the above

  4. None of the above

Show answer
Correct Option: C
Explanation:

To export goods from India, one must file an application with the Reserve Bank of India and obtain a license from the Directorate General of Foreign Trade.

What is the procedure for obtaining permission to invest in India?

  1. File an application with the Reserve Bank of India

  2. Obtain a license from the Foreign Investment Promotion Board

  3. Both of the above

  4. None of the above

Show answer
Correct Option: C
Explanation:

To invest in India, one must file an application with the Reserve Bank of India and obtain a license from the Foreign Investment Promotion Board.

What are the restrictions on foreign investment in India?

  1. Foreign investment is not allowed in certain sectors

  2. Foreign investment is subject to a maximum limit

  3. Both of the above

  4. None of the above

Show answer
Correct Option: C
Explanation:

Foreign investment is not allowed in certain sectors and is subject to a maximum limit.

What are the benefits of investing in India?

  1. India has a large and growing economy

  2. India has a skilled and educated workforce

  3. India has a favorable investment climate

  4. All of the above

Show answer
Correct Option: D
Explanation:

India has a large and growing economy, a skilled and educated workforce, and a favorable investment climate.

What are the risks of investing in India?

  1. India is a developing country

  2. India has a high level of corruption

  3. India has a weak infrastructure

  4. All of the above

Show answer
Correct Option: D
Explanation:

India is a developing country, has a high level of corruption, and has a weak infrastructure.

What is the future of foreign investment in India?

  1. Foreign investment in India is expected to grow in the coming years

  2. Foreign investment in India is expected to decline in the coming years

  3. Foreign investment in India is expected to remain stable in the coming years

  4. It is difficult to predict the future of foreign investment in India

Show answer
Correct Option: D
Explanation:

It is difficult to predict the future of foreign investment in India as it depends on a number of factors, including the global economic outlook, the political climate in India, and the policies of the Indian government.

What is the role of the Reserve Bank of India in regulating foreign exchange in India?

  1. The Reserve Bank of India is responsible for managing the foreign exchange reserves of India

  2. The Reserve Bank of India is responsible for regulating the foreign exchange market in India

  3. The Reserve Bank of India is responsible for both of the above

  4. None of the above

Show answer
Correct Option: C
Explanation:

The Reserve Bank of India is responsible for managing the foreign exchange reserves of India and regulating the foreign exchange market in India.

What is the role of the Directorate General of Foreign Trade in regulating foreign trade in India?

  1. The Directorate General of Foreign Trade is responsible for issuing licenses for the import and export of goods

  2. The Directorate General of Foreign Trade is responsible for regulating the prices of imported and exported goods

  3. The Directorate General of Foreign Trade is responsible for both of the above

  4. None of the above

Show answer
Correct Option: C
Explanation:

The Directorate General of Foreign Trade is responsible for issuing licenses for the import and export of goods and regulating the prices of imported and exported goods.

What is the role of the Foreign Investment Promotion Board in regulating foreign investment in India?

  1. The Foreign Investment Promotion Board is responsible for approving foreign investment proposals

  2. The Foreign Investment Promotion Board is responsible for setting the limits on foreign investment in different sectors

  3. The Foreign Investment Promotion Board is responsible for both of the above

  4. None of the above

Show answer
Correct Option: C
Explanation:

The Foreign Investment Promotion Board is responsible for approving foreign investment proposals and setting the limits on foreign investment in different sectors.

What is the role of the Ministry of Finance in regulating foreign exchange and foreign trade in India?

  1. The Ministry of Finance is responsible for formulating policies on foreign exchange and foreign trade

  2. The Ministry of Finance is responsible for implementing policies on foreign exchange and foreign trade

  3. The Ministry of Finance is responsible for both of the above

  4. None of the above

Show answer
Correct Option: C
Explanation:

The Ministry of Finance is responsible for formulating and implementing policies on foreign exchange and foreign trade.

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