Which of the Following Is True of Bilateral Funding

question 96

Multiple Choice

Which of the following is true of bilateral funding?

• A)It is provided by the World Bank only.
• B)It is tied to the purchase of goods and services from donor countries.
• C)It includes grants and loans that are extended at very high interest rates.
• D)It is provided by the International Monetary Fund only.
• E)It is provided by philanthropic organizations.

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Definitions:

International Reserves

International reserves are assets held by central banks in foreign currencies, gold, and special drawing rights, serving as a means to pay off international debt obligations or influence currency exchange rates.

Unilateral Transfers

These are one-way transfers of funds or resources from one country to another or from governments to international organizations without a direct reciprocal expectation.

Persian Gulf War

a conflict that took place from 1990 to 1991, initiated by Iraq's invasion of Kuwait, leading to military intervention by a coalition led by the United States.

Financial Account

A component of the balance of payments that records transactions involving financial assets between residents and non-residents.