Which Organization Primarily Makes and Guarantees Loans to Developing Nations

question 45

Multiple Choice

Which organization primarily makes and guarantees loans to developing nations for basic development projects such as the construction of dams, roads, and schools?

• A) the World Bank
• B) the New Economic Order
• C) the Federal Reserve System
• D) the Committee on Economic Development

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Definitions:

Stand-Alone Basis

Refers to evaluating a project or business independently, considering its cash flows, risks, and returns without regard for other investments or projects.

Initial Cost

The initial expense incurred to acquire an asset or start a project, excluding any subsequent costs.

Cash Flows

The sum of money flowing in and out of a company, particularly influencing its ability to cover short-term obligations.

Cost of Capital

The yield a business needs to generate from its project ventures to preserve its market valuation and draw in capital.