Which of the following is true of the International Bank for Reconstru

QUESTION

Which of the following is true of the International Bank for Reconstruction and Development (IBRD) scheme of the World Bank?

A. Resources to fund IBRD loans are raised through subscriptions from wealthy members.

B. The interest rate charged by the World Bank is higher than the commercial banks’ market rate.

C. Borrowers have to pay the bank’s cost of funds plus a margin for expenses.

D. The bank avoids offering low-interest loans to risky customers whose credit rating is often poor.

E. It was established to approve currency devaluations that are beyond 10 percent.

ANSWER

C