Which of the following Acts was introduced to regulate Foreign Exchange in India in 1973?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. FERA.
The Foreign Exchange Regulation Act (FERA) of 1973 was introduced to regulate foreign exchange in India. It aimed to control the foreign exchange market, prevent misuse, and ensure the conservation of foreign exchange resources. The Act was designed to regulate transactions related to foreign exchange and foreign securities, and to manage the foreign exchange reserves of the country more effectively. It was later replaced by the Foreign Exchange Management Act (FEMA) in 1999 for a more liberalized approach.