Q. With reference to Sovereign Green Bonds consider the following statements:
1.The funds raised by green bonds are exclusively used for green projects or businesses.
2.Sovereign Green Bonds is one form of Treasury Bills.
3.Money raised through Green Bonds is part of overall government borrowing.  
Which of the statements given above is/are correct?

[A] 1 only

[B] 1 and 3 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: B
Notes:

Statement 1 and 3 are correct. The funds raised by green bonds are exclusively used for green projects or businesses. Money raised through Green Bonds is part of overall government borrowing.

Statement 2 is incorrect. Sovereign Green Bonds is one form of dated security. Dated or long-term securities are issued for a period above 1 year and up to 40 years. These bonds carry coupon rates and are tradable in the securities market.

Source: Live Mint