MCQ for CA Final LAW - PART 2 - ECONOMIC LAW - Chapter 1 THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999

Sample Multiple Choice Questions (MCQ's) for CA Final - Paper 4 - Corporate and Economic Laws - PART 2 - ECONOMIC LAW - Chapter 1:THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999 - For Practice relevant for May/Nov 23 Examinations

 

Q:1 FEMA, 1999 aims to consolidate and amend the law relating to foreign exchange with the objective of       

 

  1. to facilitate external trade and payments and promoting the orderly development and maintenance of foreign exchange market in India.
  2. to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies
  3. to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest
  4. all of the above.

Answer: 1

 

Q:2 FEMA, 1999 applies to          

 

  1. whole of India excluding state of Jammu and Kashmir.
  2. whole of India including state of Jammu and Kashmir.
  3. whole of India and all branches, offices and agencies outside India owned or controlled by a person resident in India and also to any contravention thereunder outside India by any person to whom this Act applies.
  4. whole of India and all branches, offices and agencies outside India owned or controlled by a person resident outside India and also to any contravention thereunder committed outside India by any person to whom this Act applies.

Answer: 3

 

Q:3 The preamble to the Foreign Exchange Management Act, 1999 states that it is an Act to ________ the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.   

 

  1. Consolidate
  2. Amend
  3. Consolidate and amend
  4. None of these

Answer: 3

 

Q:4 The objective of the Act is to ________ and for promoting the orderly development and maintenance of foreign exchange market in India.          

 

  1. Facilitating external trade and payments.
  2. Promote the orderly development of foreign exchange market in India
  3. Promote the maintenance of foreign exchange market in India
  4. All of these

Answer: 4

 

Q:5  "The Act applies to –

Statement (1): The whole of India, including the State of Jammu and Kashmir.

Statement (2): All branches, offices and agencies outside India owned or controlled by a person resident in India.

Statement (3): Any contravention committed outside India by any person to whom this Act applies."

 

  1. Only one of the above Statements is correct
  2. Only two of the above Statements is correct
  3. All the above three Statements are correct
  4. None of the above Statements is correct

Answer: 3

Q:6 The Act came into force on _____. 

 

  1. 1st May, 1999
  2. 1st June, 1999
  3. 1st October, 1999
  4. 1st June, 2000

Answer: 4

Q:7 Where redemption or any form of return such as interest or dividends is payable in Indian currency, but the security is denominated in foreign currency, it is _______.        

 

  1. Indian security
  2. Foreign security
  3. Any of these
  4. None of these

Answer: 2

Q:8 While determining as to whether a person is a resident in India or not, the period for which he has resided in India in the is to be considered.               

 

  1. Current financial year
  2. Current calendar year
  3. Preceding financial year
  4. Preceding calendar year

Answer: 3

 

CA Final - Paper 4 - Corporate and Economic Laws - PART 2 -  Economic Law - Chapter 2   

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