The Primary Function of the International Finance Corporation (IFC)is to

question 2

Multiple Choice

The primary function of the International Finance Corporation (IFC) is to

• A)provide U.S. surplus food to low-income countries.
• B)provide short-term loans to poor countries to finance international trade deficits.
• C)make infrastructure loans, that is, loans for highways, schools, communication facilities, and so forth.
• D)make loans to private enterprises in the DVCs.

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Definitions:

Nominal Rate

The reported percentage rate without taking inflation into account, representing the actual yearly cost of funds to the borrower.

Effective Rate

The interest rate on a loan or financial product restated from the nominal rate as an annual rate, which may differ once compounding interest is taken into account.

Compounded Quarterly

Interest calculation method where interest is added to the principal amount at the end of each quarter, leading to interest-on-interest effect.

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