The concept of 'Green Bonds' refers to: MCQ with Answer and Explanation

The concept of 'Green Bonds' refers to:
A. Only conventional government bonds
B. Debt instruments whose proceeds are earmarked for environmentally beneficial projects
C. Only high-yield corporate bonds
D. Only short-term money-market instruments
Answer: Option B
Solution (By JKSSB Mock Tests)
Green bonds are fixed-income securities issued to raise capital specifically for projects that have positive environmental or climate benefits, with proceeds tracked and reported accordingly.

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Practice More Economy Set 1 Questions

Question #1
The term 'Capital Formation' is essential for economic growth because it:
A. Increases the stock of productive assets
B. Reduces the productive capacity of the economy
C. Only increases consumption
D. Has no relation to productivity

Correct Answer: Option A


Explanation:
Capital formation involves net addition to the stock of capital goods, which enhances the productive capacity of the economy and supports long-term growth.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Swachh Bharat Mission' aims to achieve:
A. only rural roads
B. only water supply
C. open defecation free India and solid waste management
D. only urban sanitation

Correct Answer: Option C


Explanation:
Swachh Bharat Mission aims at open defecation free India and solid waste management.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a feature of the 'Covered Interest Parity' condition?
A. Only uncovered interest parity holds
B. The interest differential between two countries equals the forward premium or discount on the exchange rate
C. Interest rates are always equal across countries
D. Exchange rates are fixed

Correct Answer: Option B


Explanation:
Covered interest parity states that the interest rate differential between two currencies equals the forward premium or discount, eliminating covered arbitrage opportunities.

This question belongs to: Economy GK Economy Set 1