Q8 · UPSC Prelims 2016 · Set A · Current Affairs and GK

← Q7 Q9 →

With reference to 'IFC Masala Bonds', sometimes seen in the news,which of the statements given below is/are correct?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.Select the correct answer using the code given below

A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2

Correct answer: (c) Both 1 and 2

Explanation

  1. A

    1 only

    Statement 1 only. IFC is the World Bank Group’s private-sector arm, but Masala bonds are also rupee paper used for debt finance. 1 alone is incomplete.

  2. B

    2 only

    Statement 2 only. Rupee denomination and debt-finance use are right, yet the IFC–World Bank link is also correct. Dropping 1 is not the key.

  3. C

    Both 1 and 2

    Both 1 and 2. The International Finance Corporation belongs to the World Bank Group. Masala bonds are rupee-denominated bonds issued offshore; IFC’s issues opened a template for Indian public and private borrowers to raise rupee funds without immediate currency mismatch on the issuer side in the same way as dollar debt. That stored letter is the official key.

  4. D

    Neither 1 nor 2

    Neither. Both statements match the 2015–16 Masala-bond story, so ‘neither’ is not the key.

Summary. Official key is (c) both 1 and 2. IFC is the World Bank Group’s private-arm lender. Masala bonds are offshore rupee bonds and a debt-raising route. Honour the stored letter (c).

PYQ trend

When UPSC asked this

Related PYQs from other years, newest first. Open a question to read it.

  1. 2018 · Q36 · General Studies · 2 marks

    Which of the following is/are the aim/aims of "Digital India" Plan of the Government of India? 1. Formation of India's own Internet companies like China did. 2. Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centers within our national geographical boundaries. 3. Connect many of our villages to the Internet and bring Wi-Fi to many of our schools, public places and major tourist centers. Select the correct answer using the code given below:

    View answer →

  2. 2018 · Q67 · General Studies · 2 marks

    With reference to solar power production in India, consider the following statements: 1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units. 2. The solar power tariffs are determined by the Solar Energy Corporation of India. Which of the statements given above is/are correct?

    View answer →

  3. 2017 · Q88 · General Studies · 2 marks

    What is the purpose of 'Vidyanjali Yojana'? 1. To enable the famous foreign educational institutions to open their campuses in India. 2. To increase the quality of education provided in government schools by taking help from the private sector and the community. 3. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools. Select the correct answer using the code given below:

    View answer →

  4. 2016 · Q76 · General Studies · 2 marks

    Regarding 'Atal Pension Yojana', which of the following statements is/are correct? 1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers. 2. Only one member of a family can join the scheme. 3. Same amount of pension is guaranteed for the spouse for life after subscriber's death. Select the correct answer using the code given below

    View answer →

  5. 2015 · Q100 · General Studies · 2 marks

    With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? 1. It is a Public Limited Government Company. 2. It is a Non-Banking Financial Company. Select the correct answer using the code given below

    View answer →