Question

the international development association (ida) performs which of the following functions?
a. provides political risk coverage for private investments made in developing countries
b. provides long - term, low - interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members
c. provides loans and takes an equity position in private companies of developing countries and works toward developing capital markets in those economies
d. supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets

Explanation:

The International Development Association (IDA) is part of the World Bank Group. It provides long - term, low - interest loans for social sector and infrastructure projects to the poorest countries using funds from rich nation members. Option a is more related to political risk insurance entities. Option c is functions of other development finance institutions focused on private sector development. Option d is more in line with the functions of the International Bank for Reconstruction and Development (IBRD) in some cases.

Answer:

B. provides long - term, low - interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members