The International Center for the Settlement of Investment Disputes Performs

question 33

Multiple Choice

The International Center for the Settlement of Investment Disputes performs which of the following functions?

• A) Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members
• B) Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies
• C) Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets
• D) Provides political risk coverage for private investments made in developing countries
• E) Works on issues related to foreign investment disputes

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Definitions:

Equivalent Effective Rate

A comparable interest rate that equates the interest earned on different investments or loans over the same time period, taking into account the effects of compounding.

Face Value

The original value of a financial instrument as stated on the instrument itself, without accounting for interest or market value fluctuations.

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.

Compounded Monthly

An approach to interest calculation conducted every month, including both the initially loaned or deposited sum and the cumulatively gained interest from former periods.