Question

98. Consider the following statements:
i) Masala Bonds are rupee-denominated bonds sold by Indian entities in the overseas market.
ii) Masala bonds were named so by the International Bank for Reconstruction and Development, an arm of the World Bank.
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 A a) i only


A)

Masala Bonds are rupee-denominated bonds sold by Indian entities in the overseas market.

As of right now, these bonds are being traded at the London Stock Exchange.

Masala bonds were named so by the International Finance Corporation (IFC), an arm of the World Bank.

Significance: Masala Bonds can help Indian borrowers tide over exchange rate fluctuations and minimize losses. It will also help put rupee on the global map.