Q81
Convertibility of a currency is indicated by its
A.
Conversion at market rates
B.
Conversion at market rates, but subject to quantity restriction by government
C.
Conversion at market rate without any quantitative restriction by government
AnswerD.
Conversion at official rate
Answer: Option C
Solution
Answer: Option C
Solution:
Convertibility of a currency is indicated by its conversion at market rate without any quantitative restriction by government. Currency convertibility is important for international commerce as globally sourced goods must be paid for in an agreed upon currency that may not be the buyer's domestic currency.