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B Com Exam  >  B Com Tests  >  Business Law  >  Test: FEMA - B Com MCQ

Test: FEMA - B Com MCQ


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10 Questions MCQ Test Business Law - Test: FEMA

Test: FEMA for B Com 2024 is part of Business Law preparation. The Test: FEMA questions and answers have been prepared according to the B Com exam syllabus.The Test: FEMA MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: FEMA below.
Solutions of Test: FEMA questions in English are available as part of our Business Law for B Com & Test: FEMA solutions in Hindi for Business Law course. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free. Attempt Test: FEMA | 10 questions in 10 minutes | Mock test for B Com preparation | Free important questions MCQ to study Business Law for B Com Exam | Download free PDF with solutions
Test: FEMA - Question 1
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Which law replaced the Foreign Exchange Regulation Act (FERA) in India?

Detailed Solution for Test: FEMA - Question 1
The Foreign Exchange Management Act (FEMA) 2000 replaced the Foreign Exchange Regulation Act (FERA) 1973 in India. FEMA came into effect on June 1, 2000, and was more suitable for India's corporate sector as it removed many strict regulations that were present in FERA.
Test: FEMA - Question 2
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What is the main objective of FEMA?

Detailed Solution for Test: FEMA - Question 2
The main objective of FEMA is to reduce the restrictions on foreign exchange in India. It aims to make any offense related to foreign exchange a civil offense instead of a criminal offense. This helps in promoting a more open and flexible foreign exchange market.
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Test: FEMA - Question 3
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According to FEMA 2000, who can deal in foreign exchange in India?

Detailed Solution for Test: FEMA - Question 3
According to section 3 of FEMA 2000, only authorized persons under government terms can deal in foreign exchange in India. This ensures that foreign exchange transactions are regulated and monitored by the government to maintain the stability of the market.
Test: FEMA - Question 4
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Which transactions are considered as current account transactions under FEMA?
Detailed Solution for Test: FEMA - Question 4
Current account transactions under FEMA include expenses in connection with foreign travel, education, and medical care of individuals and their family members. These transactions do not have any restrictions and can be freely carried out.
Test: FEMA - Question 5
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What can RBI do regarding capital account transactions under FEMA?
Detailed Solution for Test: FEMA - Question 5
RBI has the authority to restrict various capital account transactions under FEMA. This includes the transfer of foreign securities by Indian residents, the transfer of foreign securities by Indian residents that are now outside India, and the transfer of immovable property. RBI sets the limits and regulations for these transactions after discussions with the Indian government.
Test: FEMA - Question 6
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Who can be authorized to deal in money exchange and foreign exchange according to FEMA?
Detailed Solution for Test: FEMA - Question 6
According to FEMA, RBI has the authority to authorize any body or entity to deal in money exchange and foreign exchange. This can include banks, financial institutions, and other authorized dealers. The authorized person must follow the rules and guidelines set by RBI.
Test: FEMA - Question 7
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What is the penalty for contravening the rules and regulations of FEMA 2000 or RBI directions?
Detailed Solution for Test: FEMA - Question 7
If anyone contravenes the rules and regulations of FEMA 2000 or RBI directions, they will be liable to a penalty three times the sum involved in the contravention. Additionally, if the contravention continues, the person may have to pay up to Rs. 5,000 per day during the time of contravention. In some cases, civil imprisonment of maximum six months can also be imposed.
Test: FEMA - Question 8
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Who can give the punishment of civil imprisonment under FEMA?
Detailed Solution for Test: FEMA - Question 8
The punishment of civil imprisonment under FEMA is given by the adjudicating authority appointed by the Central government. This authority has the power to impose civil imprisonment for a maximum of six months if the case involves an amount less than one crore. For cases involving amounts more than one crore, the punishment of imprisonment may be up to three years.
Test: FEMA - Question 9
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What are the categories of transactions under the current account according to FEMA?
Detailed Solution for Test: FEMA - Question 9
Current account transactions under FEMA are categorized into three explicitly drawn out categories. These categories include prohibited transactions, transactions requiring the central government's permission, and transactions requiring RBI's permission. Each category has its own set of rules and regulations that need to be followed.
Test: FEMA - Question 10
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Who is considered a 'Resident' under FEMA?
Detailed Solution for Test: FEMA - Question 10
As per FEMA, a person is considered a 'Resident' if they have been residing in India for more than 182 days. This residency status determines the applicability of FEMA for any foreign exchange transactions carried out by the individual. It is not based on citizenship but on the duration of stay in India.
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Important Questions for FEMA

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FEMA MCQs with Answers

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Online Tests for FEMA Business Law

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