Convertibility of rupee implies
- being able to convert rupee notes into gold
- allowing the value of rupee to be fixed by market forces
- freely permitting the conversion of rupee to other currencies and vice versa
- developing an international market for currencies in India
Convertibility is the quality that allows money or other financial instruments to be converted into other liquid stores of value. Freely convertible currencies have immediate value on the foreign exchange market, and few restrictions on the manner and amount that can be traded for another currency.
The correct option is C.