Question

What is the main reason green financing carries higher

Q: Answer-What is the main reason green financing carries higher credit risk compared to traditional financing...

Green financing carries higher credit risk due to the limited track records of emerging green technologies, making investment assessment more complex.

credit risk compared to traditional financing?

A High inflation rates in green sectors

B Limited track records of emerging green technologies

C High-interest rates imposed by financial institutions

D Government subsidies leading to artificial demand

E Strict RBI regulations restricting lending

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What is the main reason green financing carries higher

Solution