With reference to IFC Masala Bonds rsquo sometimes seen in the news which of the statements given be...........

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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.

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1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

International Finance Corporation is an organ of World Bank group and called as the World Bank’s private sector lending arm with a stated objective to ensure that any financing does not result in harm to communities and the environment.

Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency. Masala is an Indian word and it means spices. The term was used by the International Finance Corporation (IFC) to evoke the culture and cuisine of India