IFC Masala Bonds
Question
With reference to 'IFC Masala Bonds', sometimes seen in the news, which of the statements given below is/are correct?
Select the correct answer using the code given below.
- 1.
The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
- 2.
They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.
Options
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Explanation
Masala Bonds are rupee-denominated bonds issued by the International Finance Corporation (IFC) to finance development projects in India. Statement 1 is correct - IFC is indeed a member institution of the World Bank Group, established to support private sector development in emerging markets. Statement 2 is correct - Masala Bonds are rupee-denominated bonds (the term 'Masala' reflects Indian context) and serve as a source of debt financing for both public and private sector entities in India. Both statements are accurate regarding Masala Bonds. > Masala Bonds = IFC + World Bank + Rupee-denominated + Development financing. Answer: c.
Question details
Year
2016
Paper
GS Paper 1
Question
Q8
Subject
Economy
Sub-topic
Financial Instruments and Capital Markets
Type
Statement-based
Difficulty
Medium
Nature
Current-affairs-linked
Source hint
Current Affairs 2015
See all questions on Financial Instruments and Capital Markets
Browse every tagged question across all years