economics medium MCQ

The International Development Association (IDA), a member of the World Bank Group, primarily provides:

  1. Short-term balance of payments support to developed nations
  2. Concessional loans and grants to the world's poorest developing countries
  3. Political risk insurance to foreign direct investors
  4. Technical assistance for intellectual property rights enforcement

Answer: Concessional loans and grants to the world's poorest developing countries

While the IBRD lends to middle-income countries at market-linked rates, the IDA focuses exclusively on the poorest nations. It provides 'soft loans' (credits) with zero or very low interest rates and long grace periods, as well as outright grants, to fund projects that promote economic growth, reduce inequalities, and improve basic living conditions.

Topic International Economics - Institutions
Exam Relevance UPSC Prelims, SSC CGL, Banking
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