Which of the following observations about the International Development Association (IDA) scheme of the World Bank is true?
A)Money is raised through bond sales in the international capital market.
B)Borrowers have up to 50 years to repay at an interest rate of less than 1 percent a year.
C)IDA loans go only to European countries.
D)Grants and interest-free loans are denied to governments of underdeveloped nations.
E)The bank offers loans only to customers with a satisfactory credit rating.

Question

Quizplus · Accepted Answer

The World bank lends money under two schemes. One scheme is overseen by the International Development Association (IDA), an arm of the bank created in 1960. Resources to fund IDA loans are raised through subscriptions from wealthy members such as the United States, Japan, and Germany. IDA loans go only to the poorest countries. Borrowers have up to 50 years to repay at an interest rate of less than 1 percent a year.

Which of the Following Observations About the International Development Association