MTEL Business Practice Exam

Category - Business Operations

Which of the following best describes one of the primary functions of the World Bank?
  1. Setting interest rates that one country can charge another country to which it loans money.
  2. Regulating the international money supply.
  3. Providing low or no interest loans or grants to low income countries to promote economic growth.
  4. Setting the exchange rates used in international trade.
Explanation
Correct Response: C. The mission of the World Bank is to end extreme poverty and to promote shared prosperity. It does this primarily by offering developing countries monetary assistance with low or no interest loans, offering advice and training, and providing technical assistance to promote economic growth. Interest rates are influenced by market forces and are not set by the World Bank (A). The international money supply is influenced by the central banks of nations and is not a function of the World Bank (B). The exchange rates used in international trade are determined by the market forces of supply and demand (D), not by the World Bank.
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