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Discuss Why the World Bank Has Been Criticized for Making

question 175

Essay

Discuss why the World Bank has been criticized for making loans to nations that can attract private funds.


Definitions:

Bank Reserves

The portion of deposits that banks are required to hold either in cash in their vaults or on deposit with a central bank, as a precaution to ensure bank liquidity.

Reserve Requirement

The minimum amount of reserves that a bank is required to hold by law as a percentage of its deposits, used by central banks to control the money supply.

Open Market Sale

The selling of government bonds and securities in the open market to decrease the money supply.

Money Supply

The whole of economic resources in an economy, represented by cash, coins, and checking and savings accounts' balances, at a given time.

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