Question

FERA stands for

• A. Foreign Exchange Reservation Act
• B. Foreign Embassy Regulation Act
• C. Foreign Exchange Rules and Act
• D. Foreign Exchange Regulation Act

Hint:

Make sure to remember the pair of historical acts together:
- FERA (1973): Foreign Exchange Regulation Act (Stringent/Criminal).
- FEMA (1999): Foreign Exchange Management Act (Liberal/Civil).
The replacement of "Regulation" with "Management" reflects the economic transition of India.

Answer 1

The Correct Option is D

Step 1: Decode the abbreviation.
FERA is a well-known financial regulation law enacted in India. Break each letter: F = Foreign, E = Exchange, R = Regulation, A = Act.
Step 2: Eliminate wrong options.
Option (1) uses "Reservation," option (2) uses "Embassy," and option (3) adds "Rules and" - none of these match the actual statute.
Step 3: Confirm the answer.
FERA, enacted in 1973 and later replaced by FEMA, stands for Foreign Exchange Regulation Act.
\[ \boxed{\text{Foreign Exchange Regulation Act}} \]