Module: | Transactions, Facilities and Authorized Persons
Q9: Under FEMA, the term "Foreign Exchange" includes which of the following?
✅ Correct Answer: C
"Foreign Exchange" is defined broadly under FEMA.
It is not limited to physical cash (notes and coins). It includes deposits, credits, and balances payable in foreign currency, as well as instruments like drafts, traveler's cheques, letters of credit, and bills of exchange drawn in Indian currency but payable in foreign currency.
It is not limited to physical cash (notes and coins). It includes deposits, credits, and balances payable in foreign currency, as well as instruments like drafts, traveler's cheques, letters of credit, and bills of exchange drawn in Indian currency but payable in foreign currency.