Prelims 2016 · Economy · Question 33
With reference to 'IFC Masala Bonds', sometimes seen in the news, which of the statements given below is/are correct?<br/>1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.<br/>2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.<br/><br/>Select the correct answer using the code given below.
Answer
Both 1 and 2
1. Correct. The International Finance Corporation (IFC) is a member of the World Bank Group, focused mainly on private sector development. So statement 1 is correct.
2. Correct. Masala Bonds are rupee-denominated bonds issued in overseas markets; they provide debt financing and can be used by both public and private sector entities subject to regulations. So statement 2 is correct.
Therefore, both 1 and 2 are correct — (c).