B) Write True or False (Each question carries one mark) 1) Project finance involves raising funds on a non-recourse basis to finance an economically separable capital investment project by issuing securities or incurring bank borrowing that are designed to be serviced and redeemed exclusively out of project cash flow-- 2)Assets that can be financed on a project basis include pipelines, refineries, hydroelectric projects, toll roads etc... 3)The critical distinguishing feature of project financing is that project is not a distinct legal entity 4) Project Finance involve high leverage 5) Lenders rely on the future cash flow of the project for interest debt payment 6 Project Finance accounts for 10-15 per cent of the total capital investments in new projects worldwide 7) Project Finance can be termed as an off balance sheet financing 8) Asian Development bank and African Development Bank are multilateral lending agencies 9) Syndicating large transactions by the assembly of two or more reputable banks is called syndicated credit loans 10) Eurobonds are medium to long term marketable debt securities structured and sold in anv major currency outside the country of domicile of the issuer to investors around the world 11) Foreign bonds are bonds issued in a domestic capital market by nonresident issuers. 12) Floating rate notes are simply floating rate Eurobonds--- project risks which are inherent in the project itself- 13) Commercial risks are is an example for completion risk- 14) Construction cost overruns 15) An off take contract is used for a project that involve services