Convertibility of a currency is indicated by its

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Convertibility of a currency is indicated by its

A. Conversion at market rates

B. Conversion at market rates, but subject to quantity restriction by government

C. Conversion at market rate without any quantitative restriction by government

D. Conversion at official rate

Answer: Option C

Solution (By Examveda Team)

Convertibility of a currency is indicated by its conversion at market rate without any quantitative restriction by government. Currency convertibility is important for international commerce as globally sourced goods must be paid for in an agreed upon currency that may not be the buyer's domestic currency.

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