📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    'Masala Bonds' are Indian Rupee-denominated bonds

    issued:
    A Within India by Indian companies. Correct Answer Incorrect Answer
    B Overseas by Indian entities. Correct Answer Incorrect Answer
    C Within India by foreign companies. Correct Answer Incorrect Answer
    D Overseas by foreign governments. Correct Answer Incorrect Answer

    Solution

    Masala Bonds are bonds issued outside India by an Indian entity but denominated in Indian Rupees, not in the local currency of the country where they are issued. This transfers the currency risk from the issuer to the investor.

    Practice Next
    ask-question