FEMA Quiz

The Foreign Exchange Management Act (FEMA) was enacted in which year?

• 1991

• 1995

• 1999

• 2001

FEMA primarily deals with:

• Domestic trade regulations

• Foreign exchange transactions

• Income tax laws

• Industrial licensing

Which of the following is NOT a focus area of FEMA?

• Current Account transactions

• Capital Account transactions

• Domestic stock market regulations

• Remittance of assets

"Current Account transactions" under FEMA refer to:

• Transactions related to capital assets

• Transactions involving foreign direct investment

• Transactions other than capital account transactions

• Transactions related to real estate

"Capital Account transactions" under FEMA include:

• Import and export of goods

• Loans and investments

• Travel expenses

• Education expenses

"Realisation" in the context of FEMA refers to:

• Conversion of foreign currency into domestic currency

• Holding foreign currency without conversion

• Investing foreign currency in overseas markets

• Borrowing foreign currency

"Repatriation" under FEMA means:

• Sending foreign currency out of the country

• Bringing foreign currency into the country

• Exchanging foreign currency with another currency

• Retaining foreign currency abroad

"Surrender of foreign currency" under FEMA implies:

• Keeping foreign currency for an indefinite period

• Selling foreign currency to an authorized dealer

• Lending foreign currency to a friend

• Investing foreign currency in a foreign bank

"Remittance of assets" under FEMA refers to:

• Transfer of goods within the country

• Transfer of assets to a foreign country

• Purchase of assets within the country

• Sale of assets within the country

"Possession and retention of foreign currency" under FEMA is generally:

• Allowed without any restrictions

• Allowed only up to a certain limit and for specific purposes

• Completely prohibited

• Allowed only for government employees