Consider the following statements with reference to ‘IFC Masala Bonds’ -

The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.

Select the correct answer using the code given below.

Question

Consider the following statements with reference to &lsquo;IFC Masala Bonds&rsquo; -

The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.

Select the correct answer using the code given below.

Accepted Answer

Both 1 and 2

Explanation: Answer: Option 3 — Both 1 and 2 ✅ Statement 1 – Correct: The International Finance Corporation (IFC) is the private sector arm of the World Bank Group, which comprises five institutions working to reduce poverty and promote sustainable development in developing countries. ✅ Statement 2 – Correct: Masala Bonds are rupee-denominated bonds issued outside India by foreign entities to raise capital in Indian rupees. They serve as a source of debt financing for both public and private sector entities, while the currency risk is borne by the investors rather than the issuer.

Detailed Explanation:

Question 6 of 12 Balance of Payments

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