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    Question

    Match the following Set 1 (A, B, C, D, E Options) with

    Set 2 (P, Q, R, S, T) to form meaningful pairs. Set 1 A. The International Bank for Reconstruction and Development (IBRD) B The Multilateral Investment Guarantee Agency (MIGA) C. The International Finance Corporation (IFC) D. The International Development Association (IDA) E. The International Centre for Settlement of Investment Disputes (ICSID) Set 2 P. Offers investment, advisory, and asset management services to encourage private sector development in developing countries Q. Offers concessional loans and grants to the world's poorest developing countries R. Offers political risk insurance and credit enhancement guarantees. S. Offers loans to middle-income developing countries for financing reconstruction T. Legal dispute resolution and conciliation between international investors
    A A-S, B-Q, C-P, D-R, E-T Correct Answer Incorrect Answer
    B A-S, B-R, C-Q, D-P, E-T Correct Answer Incorrect Answer
    C A-S B-R, C-P, D-Q, E-T Correct Answer Incorrect Answer
    D A-Q, B-P, C-S, D-R, E-T Correct Answer Incorrect Answer
    E A-R, B-Q, C-S, D-P, E-T Correct Answer Incorrect Answer

    Solution

    The World Bank institutions and their objective: The World Bank Group (WBG) is a family of five international organizations that make leveraged loans to developing countries. All these organizations are headquartered in Washington, D.C., United States. The International Development Association (IDA) is an international financial institution which offers concessional loans and grants to the world's poorest developing countries. It was established in 1960 to complement the existing International Bank for Reconstruction and Development by lending to developing countries which suffer from the lowest gross national income, from troubled creditworthiness, or from the lowest per capita income. The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset management services to encourage private sector development in developing countries. It was established in 1956 as the private sector arm of the World Bank Group to advance economic development by investing in strictly for-profit and commercial projects that purport to reduce poverty and promote development.  The International Bank for Reconstruction and Development (IBRD) is an international financial institution that offers loans to middle-income developing countries. It was established in 1944 with the mission of financing the reconstruction of European nations devastated by World War II. The Multilateral Investment Guarantee Agency (MIGA) is an international financial institution which offers political risk insurance and credit enhancement guarantees. Such guarantees help investors protect foreign direct investments against political and non-commercial risks in developing countries. It was established in 1988 as an investment insurance facility to encourage confident investment in developing countries. The International Centre for Settlement of Investment Disputes (ICSID) is an international arbitration institution established in 1965 for legal dispute resolution and conciliation between international investors. It is an autonomous, multilateral specialized institution to encourage international flow of investment and mitigate non-commercial risks by a treaty drafted by the International Bank for Reconstruction and Development's executive directors and signed by member countries.

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