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CA Final Foreign Exchange Management Act 1999 — practice questions

Explore 87 free Foreign Exchange Management Act 1999 questions in CA Final Law. Open each question or exercise to read its content, reference answers and available explanation.

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Foreign Exchange Management Act 1999 questions and exercises with answers

Showing questions 1–30 of 87.

Under FEMA s.3(a), foreign exchange may not be dealt in with anyone who is notRead the answer and worked solution →FEMA s.3(b) restricts making any payment to or for the credit of a person who isRead the answer and worked solution →Under s.3(c), a payment for a non-resident must be receivedRead the answer and worked solution →Which kind of dealing is barred by s.3(d) of FEMA?Read the answer and worked solution →With no inward remittance, s.3(c) deems a payment receivedRead the answer and worked solution →Under the Explanation to s.3, a financial transaction includesRead the answer and worked solution →FEMA s.1(2) says the Act extends toRead the answer and worked solution →Under s.1(3), FEMA also applies to branches outside India owned or controlled byRead the answer and worked solution →Under s.2(c) FEMA, which of these is an authorised person?Read the answer and worked solution →A deal altering residents' overseas assets is aRead the answer and worked solution →Section 2(j) defines a current account transaction as one that isRead the answer and worked solution →Which payment is a current account transaction under s.2(j)?Read the answer and worked solution →Remittances for living expenses of parents abroad fall under s.2(j) asRead the answer and worked solution →Under s.2(m), foreign currency means any currency other thanRead the answer and worked solution →Under s.2(n), foreign exchange includes balances payable inRead the answer and worked solution →Under s.2(l), export of goods meansRead the answer and worked solution →Under s.2(l)(ii), export also coversRead the answer and worked solution →Under s.2(p), import means bringing into IndiaRead the answer and worked solution →A resident in India under s.2(v)(i) stays in India for more than how many days in the preceding financial year?Read the answer and worked solution →Under s.2(v)(ii), a body corporate registered in India isRead the answer and worked solution →Under s.2(u), the word person includesRead the answer and worked solution →Repatriating foreign exchange includesRead the answer and worked solution →The definition of transfer in s.2(ze) includesRead the answer and worked solution →Under s.2(zb), a service excludes one renderedRead the answer and worked solution →FEMA s.2(g) borrows the meaning of chartered accountant fromRead the answer and worked solution →Under s.2(h), currency includesRead the answer and worked solution →FEMA s.4 bars a resident from holding foreign exchange and alsoRead the answer and worked solution →Under s.5, any person may sell or draw foreign exchange for aRead the answer and worked solution →Under s.6(2), who specifies capital account transactions?Read the answer and worked solution →RBI cannot restrict foreign exchange drawal forRead the answer and worked solution →

Worked practice questions

Under FEMA s.3(a), foreign exchange may not be dealt in with anyone who is not

  1. An authorised person
  2. A resident individual
  3. A registered company
  4. A listed partnership
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Correct answer: A. An authorised person

Clause (a) of s.3 bars dealing in or transferring foreign exchange or foreign security to anyone who is not an authorised person.

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FEMA s.3(b) restricts making any payment to or for the credit of a person who is

  1. An exporter in India
  2. An authorised dealer
  3. Resident outside India
  4. A money changer
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Correct answer: C. Resident outside India

Clause (b) of s.3 prohibits, without permission, any payment to or for the credit of a person resident outside India.

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Under s.3(c), a payment for a non-resident must be received

  1. Via a chartered accountant
  2. By a registered company
  3. Via an authorised person
  4. After thirty days notice
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Correct answer: C. Via an authorised person

Section 3(c) forbids receiving any payment by order of a non-resident otherwise than through an authorised person, unless permitted.

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