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GS Paper IUPSC Prelims 2016
Current Events
Question No. 129Interactive Test Mode
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Q129. 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.

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.
Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2016 • International Relations and Current Affairs

Correct Answer: Option (C) — Both 1 and 2

Concept & Option Breakdown

Standard Reference Verified

Statement 1 is correct: The International Finance Corporation (IFC) is the private sector arm of the World Bank Group. Statement 2 is correct: Masala Bonds are rupee-denominated debt instruments issued outside India in international markets to mobilize capital from foreign investors, transferring currency exchange risk to the investors rather than the Indian borrowers.

Elimination Heuristic & Exam Approach

Masala bonds are famously rupee-denominated offshore bonds, and IFC is well known as the private-sector lending arm of the World Bank.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2016 (Q129)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicInternational Relations and Current Affairs → Current Events
Official Answer KeyOption (C) — Both 1 and 2

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Frequently Asked Questions — UPSC Prelims 2016 Q129

What is the official answer for UPSC Prelims 2016 GS Paper I Question 129 (International Relations and Current Affairs)?

The official UPSC answer key for this 2016 International Relations and Current Affairs (Current Events) question is Option (C): "Both 1 and 2". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2016 question belong to?

This question belongs to GS Paper I under the subject "International Relations and Current Affairs" and micro-topic "Current Events". You can explore all repeated questions from Current Events in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Current Events UPSC Prelims question using option elimination?

Masala bonds are famously rupeedenominated offshore bonds, and IFC is well known as the privatesector lending arm of the World Bank.

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