The International Development Association Was Established To

question 41

Multiple Choice

The International Development Association was established to:

• A) enhance development solely in Asia through grants.
• B) enhance economic development through non-subsidized loans (at market interest rates).
• C) enhance economic development through low-interest rate loans (below-market rates).
• D) enhance economic development of the private sector through investment in stock of corporations.

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Definitions:

Put

An options contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Investment Insurance

A financial product or strategy that provides protection against losses in one's investment portfolio, often through methods such as hedging or insuring a certain value of assets.

Portfolio Of Stocks

A collection of stocks owned by an individual or institution designed to reduce risk through diversification.

Protective Put

An options strategy where an investor holds a position in a stock and purchases a put option on the same stock to protect against a decline in its price.