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Which financial instrument is often used to fund environmental projects?

Practice Questions

Q1
Which financial instrument is often used to fund environmental projects?
  1. Corporate bonds
  2. Green bonds
  3. Treasury bills
  4. Equity shares

Questions & Step-by-Step Solutions

Which financial instrument is often used to fund environmental projects?
  • Step 1: Understand what a financial instrument is. It is a tool used to raise money or invest.
  • Step 2: Learn about different types of financial instruments, such as stocks, bonds, and loans.
  • Step 3: Identify the purpose of green bonds. They are a type of bond specifically created to fund projects that help the environment.
  • Step 4: Recognize that green bonds are used to support projects like renewable energy, clean water, and pollution reduction.
  • Step 5: Conclude that green bonds are the financial instrument often used to fund environmental projects.
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