All the Following Would Be a Possible Loan That the International

question 213

Multiple Choice

All the following would be a possible loan that the International Monetary Fund might make EXCEPT

• A) a loan to a private firm.
• B) long-term loans to a nation's government which support growth promoting projects.
• C) short-term loans to a nation's government.
• D) long-term loans to countries which are having problems in repaying existing debts.

---

Definitions:

Marginal Cost

The extra financial burden of manufacturing an additional unit of a product or service.

Price Takers

Firms or individuals who accept the market price as given and have no power to influence that price due to the competitive nature of the market.

Marginal Revenue

The additional income received from selling one more unit of a product or service.

Marginal Cost

The cost added by producing one additional unit of a product or service, a concept used in economics and financial management to analyze and make decisions.