Which of the Following Is True of the IBRD Scheme

question 2

Multiple Choice

Which of the following is true of the IBRD scheme of the World Bank?

• A)Resources to fund IBRD loans are raised through subscriptions from wealthy members.
• B)IBRD loans go only to the poorest countries.
• C)Borrowers pay the bank's cost of funds plus a margin for expenses.
• D)Borrowers have 50 years to repay at an interest rate of 1 percent a year.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed.

Tax Receipts

The revenue collected by the government through all forms of taxes, such as income tax, corporate tax, and sales tax.

Fiscal and Monetary Policies

Government strategies used to influence economic conditions, with fiscal policy involving taxation and spending decisions and monetary policy concerning the control of the money supply and interest rates.

Private Sector

The sector of the economy operated by private individuals and businesses aiming for profit, without government oversight.