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
Correct Answer: Foreign Exchange Management Act
Solution : The correct answer is the Foreign Exchange Management Act.
The Foreign Exchange Regulation Act (FERA) in India was replaced by the Foreign Exchange Management Act (FEMA). FEMA came into effect on June 1, 2000, and it marked a shift from the stringent regulations of FERA to a more liberalised and market-oriented approach to managing foreign exchange in the country. FEMA focuses on facilitating external trade and payments rather than regulating and controlling foreign exchange transactions.
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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 : 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.
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.
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) imposed strict controls on foreign exchange transactions.
Statement 2: FERA was replaced by the Foreign Exchange Management Act (FEMA) in 2002.
Statement 2: FERA was replaced by the Foreign Exchange Management Act (FEMA) in 1999.
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