Convertibility of rupee implies:
Detailed Explanation:
Convertibility of rupee refers to the freedom to convert Indian rupees into other currencies and vice versa without restrictions, enabling cross-border transactions.
Option 1 refers to the outdated gold standard, Option 2 describes a floating exchange rate system, and Option 4 refers to currency trading infrastructure—none of which defines convertibility itself.
Question 7 of 12 Balance of Payments
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