UPSC Prelims 2026 · GS Paper I
Question 92: Economy and Social Development
A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called :
AnswerUPSC’s answer is (c).
A sustainability bond finances a combination of green (environmental) and social projects. A green bond finances only environmental projects, and a social bond only social projects. A sovereign bond is simply debt issued by a government and is defined by its issuer, not by what the proceeds are used for.
Why each option is right or wrong
- (a) Wrong: a green bond funds environmental projects only.
- (b) Wrong: a social bond funds social projects only.
- (c) Right: the proceeds fund both environmental and social projects.
- (d) Wrong: sovereign refers to the issuer, a government, not to the use of funds.
Only the provisional key (27 May 2026) was found; the final key replaces it when found.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2026, General Studies Paper I, Series A. The paper on upsc.gov.in.