FEMA divides transactions into:
APermitted and Prohibited
BTrade and Non-trade
CResident and Non-resident transactions only
DCurrent Account and Capital Account Transactions
Answer & Solution
Correct answer: D. Current Account and Capital Account Transactions
1. FEMA divides transactions into CURRENT ACCOUNT (Section 5) and CAPITAL ACCOUNT (Section 6) transactions.
2. Current account transactions are generally permitted; capital account transactions are regulated.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — FEMA 1999_