Question : Statement 1: The Foreign Exchange Regulation Act (FERA) imposed strict controls on foreign exchange transactions.
Statement 2: FERA was replaced by the Foreign Exchange Management Act (FEMA) in 1999.
Option 1: Both statements are true.
Option 2: Both statements are false.
Option 3: Statement 1 is true, and statement 2 is false.
Option 4: Statement 1 is false, and statement 2 is true.
Correct Answer: Both statements are false.
Solution : The correct answer is (b) Both statements are false.
Statement 1 is false. The Foreign Exchange Regulation Act (FERA) enacted in 1973 did impose strict controls on foreign exchange transactions in India. It aimed to regulate and control foreign exchange dealings to conserve and manage the country's foreign exchange resources. FERA imposed restrictions on various aspects of foreign currency transactions, such as acquisition, holding, and transfer of foreign exchange.
Statement 2 is also false. FERA was not replaced by the Foreign Exchange Management Act (FEMA) in 1999. Instead, FERA was repealed and replaced by the Foreign Exchange Management Act (FEMA) in 1973. FEMA introduced a more liberalized and modern framework for foreign exchange management in India.
Therefore, the correct answer is that both statements are false.
Statement 2: FERA was replaced by the Foreign Exchange Management Act (FEMA) in 2002.
Question : Statement 1: The Foreign Exchange Regulation Act (FERA) was replaced by the Foreign Exchange Management Act (FEMA) in 2000.
Statement 2: FEMA aimed to promote foreign investment and simplify foreign exchange transactions.
Question : Statement 1: The Foreign Exchange Regulation Act (FERA) was enacted to regulate foreign trade in India.
Statement 2: FERA was replaced by the Foreign Exchange Management Act (FEMA) in 1991.
Question : The Foreign Exchange Management Act (FEMA) replaced which earlier act?
Option 1: Foreign Exchange Regulation Act (FERA)
Option 2: Foreign Investment Promotion Board (FIPB)
Option 3: Industrial Development and Regulation Act (IDRA)
Option 4: Companies Act
Question : The Foreign Exchange Regulation Act was replaced by the ______ in India.
Option 1: Foreign Exchange Currency Act
Option 2: Foreign Exchange Finances Act
Option 3: Foreign Exchange Funds Act
Option 4: Foreign Exchange Management Act
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