Home Indian Economy MCQs

Question

What is the main objective of the Foreign Exchange Management Act (FEMA)?

  1. To promote and regulate foreign trade and payments
  2. To control inflation
  3. To manage the fiscal deficit
  4. To regulate the stock market

Answer:

Option A: To promote and regulate foreign trade and payments

Detailed Solution:

The correct answer is “To promote and regulate foreign trade and payments”.

FEMA aims to facilitate external trade and payments and promote the orderly development and maintenance of the foreign exchange market in India.