MCQs 2026

The defining feature of green bonds is the commitment to allocate the funds raised to eligible green projects. This 'use of proceeds' is crucial and is typically subject to reporting and verification to ensure transparency and credibility.

The rise in green bond issuance reflects a growing trend where investors are increasingly seeking out investments that align with environmental, social, and governance (ESG) principles, driving corporate action in this area.

Green bonds are specifically designed to raise capital for projects that contribute to environmental sustainability, such as renewable energy, energy efficiency, pollution prevention, and clean transportation.

A cautious stance suggests the RBI is wary of potential inflationary pressures or financial imbalances. Therefore, it is more likely to manage liquidity by absorbing excess funds or limiting their injection, rather than freely supplying them.

The RBI employs a variety of monetary policy tools, including the Repo Rate, Reverse Repo Rate, CRR, SLR, and OMOs, to influence the amount of liquidity available in the banking system and the broader economy.

A cautious liquidity stance by the RBI aims to prevent excessive money supply, which can fuel inflation. By managing liquidity, the central bank seeks to maintain price stability and overall financial system health.

Vietnam is a member of the Association of Southeast Asian Nations (ASEAN), while Brazil, Argentina, and Chile are associated with Mercosur.

The FTA aims to boost economic cooperation, reduce trade barriers, and facilitate easier movement of goods and services between ASEAN and Mercosur nations.

Mercosur is a South American trade bloc that includes countries like Brazil, Argentina, Paraguay, and Uruguay.

The current structure is often criticized for being outdated and failing to represent the geopolitical realities of the 21st century, particularly the Global South.