What Is the Rationale for the IMF and World Bank

question 32

Multiple Choice

What is the rationale for the IMF and World Bank to provide loans to developing countries?

• A) They will receive higher interest rates in return because of the higher risk.
• B) They will enable new infrastructure that will lead more domestic and foreign businesses to open and expand.
• C) for purely humanitarian reasons
• D) They are chartered to loan to high risk countries, knowing that many of the financed projects will fail.
• E) The huge growth potential will insure high returns.

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