Q10 · UPSC current affairs · 15 October 2026 · News · World Bank $36 billion mobilization MSME funding India

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With reference to the financial terms associated with multilateral institutions, what does 'Blended Finance' signify?

A Strategic use of development finance to mobilize additional commercial capital toward sustainable development.
B An international financial institution created by multiple countries to promote economic development.
C Investment from commercial private entities enabled directly by multilateral development institution financing.
D Assessment of a business showing sufficient risk-return balance to secure commercial financing.

Correct answer: (a) Strategic use of development finance to mobilize additional commercial capital toward sustainable development.

Explanation

Option A is correct because Blended Finance is defined as the strategic use of development finance to mobilize additional commercial capital toward sustainable development. Option D describes bankability, option C describes private capital mobilization, and option B defines a multilateral development bank.

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