An international financial institution lending to developing states to build capital stock and stimulate growth?
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Answer: D. None
Explanation
Major international lending institutions like the World Bank provide developmental loans to developing nations for capital projects. The specific international options listed in the choices do not fulfill this primary long-term capital development mandate. Therefore, none of the specific choices correctly name the primary institution. International financial institutions are established by multiple countries to foster global economic cooperation and development. The World Bank group specifically focuses on long-term poverty reduction and infrastructure building in developing states. This separates them from short-term balance of payment lenders or commercial entities.
Developing nations rely on international capital loans to build roads, power grids, and educational facilities. These investments stimulate long-term economic growth and integrate emerging economies into global trade. Proper institutional support is vital for sustainable international development. Option A focuses on short-term balance of payment crises and macroeconomic stabilization rather than capital stock building. Option B refers to specialized Islamic financial institutions that operate under religious laws. Option C represents private retail and corporate banking rather than international development finance.
- Subject
- Agriculture
- Category
- Agriculture
- Topic
- —
- Difficulty
- medium
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