which of the following statements about loans from the imf and world bank is false? a. corrupt leaders often…
which of the following statements about loans from the imf and world bank is false? a. corrupt leaders often embezzle funds, but countries must repay the money anyway, even after the leader is removed from office. b. loans never are spent in ways that benefit economic growth. c. loan requirements may force nations to cut spending on social programs, including health care and education. d. required debt payments sometimes exceed annual gross domestic product. please select the best answer from the choices provided.
Answer
Brief Explanations:
- Option A: It's true that countries are responsible for repaying IMF/World - Bank loans even if leaders embezzle funds.
- Option B: Loans from the IMF and World Bank are often intended to promote economic growth and are sometimes used effectively for that purpose, so the statement that they never benefit economic growth is false.
- Option C: Loan conditions can sometimes lead to cuts in social - program spending.
- Option D: In some cases, debt payments can be a heavy burden and exceed GDP.
Answer:
B. Loans never are spent in ways that benefit economic growth.