Topic Details (Notes format)

Social Impact Bonds and Innovative Financing

Subject: Economics

Book: Comprehensive Indian Economy - Additional Topics

Social impact bonds bring private investments into social programs (education, health), where returns depend on measured outcomes. If targets (e.g., higher literacy rates) are met, the government repays principal plus interest. This approach fosters result-oriented spending, but measuring outcomes can be complex. Exam focus: real case studies (Rajasthan SDG bond or municipal bonds for water supply) and how such instruments demand robust data analytics and collaboration among government, NGOs, and investors.

Practice Questions

What is the primary goal of a progressive tax system?

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What is a “repo rate”?

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Which of the following is an example of fiscal policy?

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What does the term “national income” refer to?

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Which of the following measures can reduce a trade deficit?

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Which of the following is NOT part of the World Bank Group?

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What is “inflation targeting”?

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What is the “law of diminishing marginal utility”?

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Which of the following is NOT a function of the World Trade Organization (WTO)?

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What is meant by “monetary policy”?

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