A
A short-term commercial banking instrument issued exclusively by rural cooperative banks.
B
A non-tradable sovereign debt security issued to finance foreign trade deficits.
C
A collective investment trust that pools capital to hold revenue-generating infrastructure assets.
D
A mandatory corporate tax rebate provided by the Ministry of Finance for real estate developers.
Correct answer: (c) A collective investment trust that pools capital to hold revenue-generating infrastructure assets.
Explanation
Option C is correct as an InvIT is precisely a collective investment trust pooling capital to hold revenue-generating infrastructure assets. Options A, C, and D are incorrect definitions that mischaracterize InvITs as banking instruments, tax rebates, or sovereign debt.
Same topic · past papers
UPSC has asked this before
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