The World Bank is made up of several institutions. Which of the following correctly identifies the institution within the World Bank Group that provides loans and grants to the governments of the poorest countries at very low or zero interest rates?

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Question

The World Bank is made up of several institutions. Which of the following correctly identifies the institution within the World Bank Group that provides loans and grants to the governments of the poorest countries at very low or zero interest rates?

Accepted Answer

The International Development Association (IDA) — Award 1 mark. The IDA is the World Bank Group institution that provides loans and grants to the governments of the poorest countries at very low or zero interest. The International Bank for Reconstruction and Development lends to middle-income and creditworthy low-income countries at near-market rates. The International Finance Corporation invests in the private sector in developing countries rather than lending to governments. The Multilateral Investment Guarantee Agency provides political risk insurance and credit enhancement to attract private investment, not loans or grants.

Answer

The International Finance Corporation (IFC)

Answer

The Multilateral Investment Guarantee Agency (MIGA)

Answer

The International Development Association (IDA)

Answer

The International Bank for Reconstruction and Development (IBRD)

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