Multiple choice

International Finance Corporation , a member of world bank group recently issued a masala bond to the international investors. The subscribers in dollar are promised a certain interest rate. They buy the bond with certain dollars and those dollars are fully protected irrespective of the exchange rate fluctuations. In the these context read the following statements and answer which ones among them is correct:

  1. IFC takes the exchange rate risks.

  2. The bond purchasers takes the exchange risks

  3. Both takes the exchange rate risks

  4. Neither takes the exchange rates risks.

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 (a)