What is the primary reason why exchange rate movements in the Indian forex market do not necessarily follow international trends in the short run?

Question

Economics · Forex Market

Verified Solution4 OptionsUpdated: October 2026👁️1 View

Share:

Correct answer

Restrictions on the free flow of capital into or out of the country.

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Chapter Practice

Want more practice questions on Forex Market?

Solve complete topic-wise tests with detailed solutions on GkGet.

Recommended practice questions in Economics · Forex Market

The arrival of which commission in India triggered widespread protests, including mass hartals across the country in 1928?

Which of the following leaders was instrumental in initiating and leading India’s struggle for independence?

Which of the following viceroys of India is associated with the 'Ilbert Bill' controversy?

Answer 1

The completely free flow of capital into and out of India.

Answer 2

Restrictions on the free flow of capital into or out of the country.

Answer 3

The fixed exchange rate regime maintained by the Reserve Bank of India.

Answer 4

Direct regulation of all micro-transactions in the forex market by the Indian government.

Related Practice Questions