What Is the Rationale for the IMF and World Bank

Multiple Choice

What is the rationale for the IMF and World Bank to provide loans to developing countries?

A) They will receive higher interest rates in return because of the higher risk.
B) They will enable new infrastructure that will lead more domestic and foreign businesses to open and expand.
C) for purely humanitarian reasons
D) They are chartered to loan to high risk countries, knowing that many of the financed projects will fail.
E) The huge growth potential will insure high returns.