Banking · Project Finance
In many project financing structures, escrow arrangements are used to route receivables through a controlled mechanism. The main advantage of an escrow account is that it:
- 1Ensures project receipts are applied in a pre-defined priority order among stakeholders✓
- 2Provides an automatic hedge against inflation and exchange-rate changes
- 3Allows promoters unrestricted operational withdrawals
- 4Eliminates the need for any lender monitoring after COD
Correct answer
Ensures project receipts are applied in a pre-defined priority order among stakeholders
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Preparing for Banking?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Want more practice questions on Project Finance?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Banking · Project Finance