Why do you think the World Bank makes loans to China when China has over $1 trillion in foreign currency reserves?
A) The income distribution is skewed in China, and so the World Bank can still perform useful projects in rural areas.
B) China repays its loans whereas some countries do not.
C) Profit earned from loans to growing economies like China helps pay for projects in much poorer countries-for example, in Sub-Saharan Africa.
D) Each of these answers is correct.
Correct Answer:
Verified
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