Convertibility of rupee implies
- Abeing able to convert rupee notes into gold
- Ballowing the value of rupee to be fixed by market forces
- Cfreely permitting the conversion of rupee to other currencies and vice versaCorrect
- Ddeveloping an international market for currencies in India
Explanation
Convertibility of a currency, such as the Indian Rupee, refers to the ease with which it can be exchanged for other foreign currencies, and vice versa, without significant governmental restrictions or controls. When a currency is convertible, individuals and businesses can exchange it for foreign currencies for various purposes, including trade, investment, and travel. This implies that the value of the currency is largely determined by market forces (demand and supply) rather than administrative controls. India's Rupee is currently fully convertible on the current account and partially convertible on the capital account.
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