{"id":91341,"date":"2025-06-01T10:53:47","date_gmt":"2025-06-01T10:53:47","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91341"},"modified":"2025-06-01T10:53:47","modified_gmt":"2025-06-01T10:53:47","slug":"with-reference-to-ifc-masala-bonds-sometimes-seen-in-the-news-whic","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-ifc-masala-bonds-sometimes-seen-in-the-news-whic\/","title":{"rendered":"With reference to &#8216;IFC Masala Bonds&#8217;, sometimes seen in the news, whic"},"content":{"rendered":"<p>With reference to &#8216;IFC Masala Bonds&#8217;, sometimes seen in the news, which of the statements given below is\/are correct?<\/p>\n<ul>\n<li>1. The International Finance Corpora- tion, which offers these bonds, is an arm of the World Bank.<\/li>\n<li>2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below.<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option3&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2016<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2016.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2016\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nIFC Masala Bonds are a type of bond issued by the International Finance Corporation (IFC) or Indian entities in overseas markets. The term &#8216;Masala Bonds&#8217; generally refers to rupee-denominated bonds issued outside India.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nLet&#8217;s evaluate each statement:<br \/>\n1.  **The International Finance Corporation, which offers these bonds, is an arm of the World Bank:** The World Bank Group is a family of five international organizations. The International Finance Corporation (IFC) is one of these five organizations, specifically focused on private sector development in developing countries. This statement is correct. IFC was one of the first entities to issue rupee-denominated bonds in the international market, labeling them &#8220;Masala Bonds&#8221;.<br \/>\n2.  **They are the rupee-denominated bonds and are a source of debt financing for the public and private sector:** Masala Bonds are debt instruments denominated in Indian Rupees (INR) but issued in overseas capital markets. This allows Indian entities (both public and private sector) or multilateral agencies like IFC to raise funds from international investors in INR, thereby transferring the currency risk from the Indian issuer to the overseas investor. This statement is correct.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nIssuing bonds in INR helps Indian companies hedge against currency fluctuations when borrowing from abroad. The name &#8216;Masala Bonds&#8217; was given by IFC to give a local flavour, similar to how Yen-denominated bonds issued outside Japan are called &#8216;Samurai bonds&#8217; or Yuan-denominated bonds outside China are called &#8216;Dim Sum bonds&#8217;.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>With reference to &#8216;IFC Masala Bonds&#8217;, sometimes seen in the news, which of the statements given below is\/are correct? 1. The International Finance Corpora- tion, 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. &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"With reference to &#8216;IFC Masala Bonds&#8217;, sometimes seen in the news, whic\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-ifc-masala-bonds-sometimes-seen-in-the-news-whic\/#more-91341\">Detailed Solution<span class=\"screen-reader-text\">With reference to &#8216;IFC Masala Bonds&#8217;, sometimes seen in the news, whic<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1098,1226],"class_list":["post-91341","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1098","tag-external-sector-of-economy","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With reference to &#039;IFC Masala Bonds&#039;, sometimes seen in the news, whic<\/title>\n<meta name=\"description\" content=\"IFC Masala Bonds are a type of bond issued by the International Finance Corporation (IFC) or Indian entities in overseas markets. The term &#039;Masala Bonds&#039; generally refers to rupee-denominated bonds issued outside India. Let&#039;s evaluate each statement: 1. **The International Finance Corporation, which offers these bonds, is an arm of the World Bank:** The World Bank Group is a family of five international organizations. The International Finance Corporation (IFC) is one of these five organizations, specifically focused on private sector development in developing countries. This statement is correct. IFC was one of the first entities to issue rupee-denominated bonds in the international market, labeling them &quot;Masala Bonds&quot;. 2. **They are the rupee-denominated bonds and are a source of debt financing for the public and private sector:** Masala Bonds are debt instruments denominated in Indian Rupees (INR) but issued in overseas capital markets. This allows Indian entities (both public and private sector) or multilateral agencies like IFC to raise funds from international investors in INR, thereby transferring the currency risk from the Indian issuer to the overseas investor. This statement is correct.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-ifc-masala-bonds-sometimes-seen-in-the-news-whic\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to &#039;IFC Masala Bonds&#039;, sometimes seen in the news, whic\" \/>\n<meta property=\"og:description\" content=\"IFC Masala Bonds are a type of bond issued by the International Finance Corporation (IFC) or Indian entities in overseas markets. The term &#039;Masala Bonds&#039; generally refers to rupee-denominated bonds issued outside India. Let&#039;s evaluate each statement: 1. **The International Finance Corporation, which offers these bonds, is an arm of the World Bank:** The World Bank Group is a family of five international organizations. The International Finance Corporation (IFC) is one of these five organizations, specifically focused on private sector development in developing countries. This statement is correct. IFC was one of the first entities to issue rupee-denominated bonds in the international market, labeling them &quot;Masala Bonds&quot;. 2. **They are the rupee-denominated bonds and are a source of debt financing for the public and private sector:** Masala Bonds are debt instruments denominated in Indian Rupees (INR) but issued in overseas capital markets. This allows Indian entities (both public and private sector) or multilateral agencies like IFC to raise funds from international investors in INR, thereby transferring the currency risk from the Indian issuer to the overseas investor. This statement is correct.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-ifc-masala-bonds-sometimes-seen-in-the-news-whic\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:53:47+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to 'IFC Masala Bonds', sometimes seen in the news, whic","description":"IFC Masala Bonds are a type of bond issued by the International Finance Corporation (IFC) or Indian entities in overseas markets. The term 'Masala Bonds' generally refers to rupee-denominated bonds issued outside India. Let's evaluate each statement: 1. **The International Finance Corporation, which offers these bonds, is an arm of the World Bank:** The World Bank Group is a family of five international organizations. The International Finance Corporation (IFC) is one of these five organizations, specifically focused on private sector development in developing countries. This statement is correct. IFC was one of the first entities to issue rupee-denominated bonds in the international market, labeling them \"Masala Bonds\". 2. **They are the rupee-denominated bonds and are a source of debt financing for the public and private sector:** Masala Bonds are debt instruments denominated in Indian Rupees (INR) but issued in overseas capital markets. This allows Indian entities (both public and private sector) or multilateral agencies like IFC to raise funds from international investors in INR, thereby transferring the currency risk from the Indian issuer to the overseas investor. This statement is correct.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-ifc-masala-bonds-sometimes-seen-in-the-news-whic\/","og_locale":"en_US","og_type":"article","og_title":"With reference to 'IFC Masala Bonds', sometimes seen in the news, whic","og_description":"IFC Masala Bonds are a type of bond issued by the International Finance Corporation (IFC) or Indian entities in overseas markets. The term 'Masala Bonds' generally refers to rupee-denominated bonds issued outside India. Let's evaluate each statement: 1. **The International Finance Corporation, which offers these bonds, is an arm of the World Bank:** The World Bank Group is a family of five international organizations. The International Finance Corporation (IFC) is one of these five organizations, specifically focused on private sector development in developing countries. This statement is correct. IFC was one of the first entities to issue rupee-denominated bonds in the international market, labeling them \"Masala Bonds\". 2. **They are the rupee-denominated bonds and are a source of debt financing for the public and private sector:** Masala Bonds are debt instruments denominated in Indian Rupees (INR) but issued in overseas capital markets. This allows Indian entities (both public and private sector) or multilateral agencies like IFC to raise funds from international investors in INR, thereby transferring the currency risk from the Indian issuer to the overseas investor. This statement is correct.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-ifc-masala-bonds-sometimes-seen-in-the-news-whic\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:53:47+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-ifc-masala-bonds-sometimes-seen-in-the-news-whic\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-ifc-masala-bonds-sometimes-seen-in-the-news-whic\/","name":"With reference to 'IFC Masala Bonds', sometimes seen in the news, whic","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:53:47+00:00","dateModified":"2025-06-01T10:53:47+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"IFC Masala Bonds are a type of bond issued by the International Finance Corporation (IFC) or Indian entities in overseas markets. The term 'Masala Bonds' generally refers to rupee-denominated bonds issued outside India. Let's evaluate each statement: 1. **The International Finance Corporation, which offers these bonds, is an arm of the World Bank:** The World Bank Group is a family of five international organizations. The International Finance Corporation (IFC) is one of these five organizations, specifically focused on private sector development in developing countries. This statement is correct. IFC was one of the first entities to issue rupee-denominated bonds in the international market, labeling them \"Masala Bonds\". 2. **They are the rupee-denominated bonds and are a source of debt financing for the public and private sector:** Masala Bonds are debt instruments denominated in Indian Rupees (INR) but issued in overseas capital markets. This allows Indian entities (both public and private sector) or multilateral agencies like IFC to raise funds from international investors in INR, thereby transferring the currency risk from the Indian issuer to the overseas investor. This statement is correct.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-ifc-masala-bonds-sometimes-seen-in-the-news-whic\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-ifc-masala-bonds-sometimes-seen-in-the-news-whic\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-ifc-masala-bonds-sometimes-seen-in-the-news-whic\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"With reference to &#8216;IFC Masala Bonds&#8217;, sometimes seen in the news, whic"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91341","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=91341"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91341\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=91341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=91341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=91341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}