Q. With reference to ‘Green Bonds’ consider the following statements:
1.It is a fixed-income instrument designed to support specific environmental projects.
2.These bonds carry higher interest rates than the interest rate on loans by commercial banks.
Select the correct statements using the codes given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

Statement 1: Green Bonds is a fixed-income instrument designed to support specific environmental projects.

Statement 2: The statement is incorrect. Green bonds usually carry lower interest rates than the interest rate on loans by commercial banks.

Source: Business Standard