Which of the following is true of the IBRD scheme of the World Bank?
A)Resources to fund IBRD loans are raised through subscriptions from wealthy members.
B)IBRD loans go only to the poorest countries.
C)Borrowers pay the bank's cost of funds plus a margin for expenses.
D)Borrowers have 50 years to repay at an interest rate of 1 percent a year.

Question

Quizplus · Accepted Answer

Under the IBRD scheme,money is raised through bond sales in the international capital market.Borrowers pay what the bank calls a market rate of interest-the bank's cost of funds plus a margin for expenses.This "market" rate is lower than commercial banks' market rate.Under the IBRD scheme,the bank offers low-interest loans to risky customers whose credit rating is often poor,such as the governments of underdeveloped nations.

Which of the Following Is True of the IBRD Scheme