Question

6. What are Green Bonds?

i) Green bonds specifies the purpose for raising the capital.

ii) Green bonds typically carry a lower interest rate than the loans offered by the commercial banks.

Which of the above statements is /are correct?

• A. a) i only
• B. b) ii only
• C. c) Both i and ii
• D. d) None

Answer 1

The correct option is C

c) Both i and ii

C)

Explanation:

What are Green Bonds?

Green bonds announces the purpose for raising the capital- to fund ‘green’ projects, which typically include those relating to renewable energy, emission reductions and so on.

Green bonds typically carry a lower interest rate than the loans offered by the commercial banks and are not risky too, as the bonds are tied to the insurer and not the successful implementation of the projects.