Economics · Capital Market and Bonds
Consider the following statements: Statement I: Masala Bonds are generally less risky for Indian borrowers than foreign currency-denominated external borrowings. Statement II: Masala Bonds are issued in Indian rupees, though the investment capital is raised from foreign investors. Statement III: In the case of Masala Bonds, the exchange rate risk is borne by the investor and not by the issuer. Which one of the following is correct in respect of the above statements?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both Statement II and Statement III are correct and both explain Statement I✓
- 2Both Statement II and Statement III are correct, but only one of them explains Statement I
- 3Only one of the Statements II and III is correct and that explains Statement I
- 4Neither Statement II nor Statement III is correc t
Correct answer
Both Statement II and Statement III are correct and both explain Statement I
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