UPSC CSE Prelims
Question 57
With reference to 'IFC Masala Bonds', sometimes seen in the news, which of the statements given below is/are correct?
- 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.
View correct answer and explanation
Correct answer: C
Correct Option: C
Explanation: IFC, a member of the World Bank Group, pioneered rupee-denominated Masala Bonds abroad as a means for issuers and investors to access rupee debt capital.
Statement/Pair-wise Analysis:
Statement/Item 1: Correct - International Finance Corporation is a World Bank Group institution working with the private sector.
Statement/Item 2: Correct - Masala Bonds are Indian-rupee-denominated debt instruments usable for eligible financing.
Option-wise Analysis:
A: Incorrect - omits correct statement/item 2.
B: Incorrect - omits correct statement/item 1.
C: Correct - includes all and only the true statements/items.
D: Incorrect - omits correct statement/items 1, 2.
Review Note: IFC is a World Bank Group member, not literally a department of the IBRD/World Bank legal entity; the exam uses “World Bank” colloquially.