On march 1, 1992, Reserve Bank of India announced a new system of exchange rates known as

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Partial convertibility
B	Liberalized exchange rate system
C	Both A and B
D	None of these

Explanation:

Detailed explanation-1: -In March 1992, Liberalised Exchange Rate Management System (LERMS) involving the dual exchange rate was instituted.

Detailed explanation-2: -Rangarajan) the Liberalised Exchange Rate Management System(LERMS) involving dual exchange rate mechanism was instituted in March 1992 which was followed by the ultimate convergence of the dual rates effective from March 1, 1993(christened modified LERMS).

Detailed explanation-3: -The Indian government introduced the Liberalised Exchange Rate Management System (LERMS) in March 1992. The new system was announced by Manmohan Singh in the 1992 budget and, in early March, by the Reserve Bank of India (RBI). This was the initial step to enable a transition to a market-determined exchange rate system.

Detailed explanation-4: -Industrial Reconstruction Bank of India (RBI) was so renamed in place of Industrial Reconstruction Corporation Ltd.

There is 1 question to complete.