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Consider the following statements regarding Concessional finance.
- Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives.
- Concessional finance cannot be in the form of grants or equity investments.
- Concessional finance targets high-impact projects responding to globally significant development challenges.
Which of the above statements is/are correct?
- a)1 only
- b)1, 2
- c)1, 3
- d)2, 3
Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding Concessional finance. Conc...
- Concessional finance is below market rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives. The term concessional finance does not represent a single mechanism or type of financial support but comprises a range of below market rate products used to accelerate a climate or development objective.
- Concessional finance targets high-impact projects responding to globally significant development challenges – from climate change mitigation and resilience to vaccine deployment, water sanitation and education – that otherwise could not go ahead without specialised financial support.
- The most common financial products used to deliver concessional finance come in the form of loans, grants and, to some extent, equity investments.
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Consider the following statements regarding Concessional finance. Conc...
Concessional finance:
Concessional finance refers to below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries. Its objective is to accelerate development by providing financial assistance on more favorable terms compared to the market rates. Let's analyze each statement to determine its correctness.
Statement 1: Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives.
This statement is correct. Concessional finance is indeed provided by major financial institutions to developing countries with the aim of promoting development objectives. These objectives can include poverty reduction, infrastructure development, education, healthcare, and other areas that contribute to the overall development of a country.
Statement 2: Concessional finance cannot be in the form of grants or equity investments.
This statement is incorrect. Concessional finance can be provided in various forms, including grants and equity investments. While it is true that concessional finance is typically provided at below-market rates, it can also include non-repayable grants or equity investments that support development projects. These grants and equity investments are aimed at facilitating the implementation of high-impact projects in developing countries.
Statement 3: Concessional finance targets high-impact projects responding to globally significant development challenges.
This statement is correct. Concessional finance is often directed towards high-impact projects that address globally significant development challenges. These challenges can range from climate change mitigation and adaptation to sustainable infrastructure development or poverty alleviation. Concessional finance aims to support projects that have the potential to create significant positive impacts on a country's development trajectory and contribute to global sustainable development goals.
Conclusion:
From the above analysis, we can conclude that statement 1 and statement 3 are correct, while statement 2 is incorrect. Concessional finance is indeed provided by major financial institutions to developing countries to accelerate development objectives. It can be in the form of grants or equity investments, and it targets high-impact projects responding to globally significant development challenges.
Concessional finance refers to below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries. Its objective is to accelerate development by providing financial assistance on more favorable terms compared to the market rates. Let's analyze each statement to determine its correctness.
Statement 1: Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives.
This statement is correct. Concessional finance is indeed provided by major financial institutions to developing countries with the aim of promoting development objectives. These objectives can include poverty reduction, infrastructure development, education, healthcare, and other areas that contribute to the overall development of a country.
Statement 2: Concessional finance cannot be in the form of grants or equity investments.
This statement is incorrect. Concessional finance can be provided in various forms, including grants and equity investments. While it is true that concessional finance is typically provided at below-market rates, it can also include non-repayable grants or equity investments that support development projects. These grants and equity investments are aimed at facilitating the implementation of high-impact projects in developing countries.
Statement 3: Concessional finance targets high-impact projects responding to globally significant development challenges.
This statement is correct. Concessional finance is often directed towards high-impact projects that address globally significant development challenges. These challenges can range from climate change mitigation and adaptation to sustainable infrastructure development or poverty alleviation. Concessional finance aims to support projects that have the potential to create significant positive impacts on a country's development trajectory and contribute to global sustainable development goals.
Conclusion:
From the above analysis, we can conclude that statement 1 and statement 3 are correct, while statement 2 is incorrect. Concessional finance is indeed provided by major financial institutions to developing countries to accelerate development objectives. It can be in the form of grants or equity investments, and it targets high-impact projects responding to globally significant development challenges.
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Consider the following statements regarding Concessional finance. Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives. Concessional finance cannot be in the form of grants or equity investments. Concessional finance targets high-impact projects responding to globally significant development challenges.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'C'. Can you explain this answer?
Question Description
Consider the following statements regarding Concessional finance. Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives. Concessional finance cannot be in the form of grants or equity investments. Concessional finance targets high-impact projects responding to globally significant development challenges.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Concessional finance. Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives. Concessional finance cannot be in the form of grants or equity investments. Concessional finance targets high-impact projects responding to globally significant development challenges.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Concessional finance. Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives. Concessional finance cannot be in the form of grants or equity investments. Concessional finance targets high-impact projects responding to globally significant development challenges.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements regarding Concessional finance. Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives. Concessional finance cannot be in the form of grants or equity investments. Concessional finance targets high-impact projects responding to globally significant development challenges.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Concessional finance. Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives. Concessional finance cannot be in the form of grants or equity investments. Concessional finance targets high-impact projects responding to globally significant development challenges.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Concessional finance. Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives. Concessional finance cannot be in the form of grants or equity investments. Concessional finance targets high-impact projects responding to globally significant development challenges.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements regarding Concessional finance. Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives. Concessional finance cannot be in the form of grants or equity investments. Concessional finance targets high-impact projects responding to globally significant development challenges.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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Consider the following statements regarding Concessional finance. Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives. Concessional finance cannot be in the form of grants or equity investments. Concessional finance targets high-impact projects responding to globally significant development challenges.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Consider the following statements regarding Concessional finance. Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives. Concessional finance cannot be in the form of grants or equity investments. Concessional finance targets high-impact projects responding to globally significant development challenges.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Consider the following statements regarding Concessional finance. Concessional finance is below-market-rate finance provided by major financial institutions, such as development banks and multilateral funds, to developing countries to accelerate development objectives. Concessional finance cannot be in the form of grants or equity investments. Concessional finance targets high-impact projects responding to globally significant development challenges.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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