Which one of the following is an important activity of the World Bank borrowings ?
All of the above
Apart from paid-in capital and retained earnings, the World Bank (IBRD) raises most of its lendable funds by borrowing, and it uses several channels to do so.
It issues bonds and notes in the international capital markets of many countries, which is its main source of borrowed funds.
It enters into currency swap agreements, borrowing in one currency and swapping the proceeds into the currency it needs at lower cost.
It also raises short-term money through its discount note programme, issuing short-dated discount notes to investors.
Since all three methods are part of the World Bank's borrowing activity, every statement applies.
Hence, the answer is All of the above.
Similar Questions
Which one of the following statements is false ?
Which of the following is not the agency of World Bank ?
Important Questions from World Bank
- __________ provides grants and interest-free loans to the world's poorest countries for a variety of poverty reduction activities.
Which one of the following institutions is not a part of the World Bank Group?
- What is not correct about International Development Association (IDA) ?
(a) Following earthquake in 2015, IDA has helped Nepal rebuild and recover.
(b) IDA ranks as the highest performing multilateral development bank in 2016.
(c) IDA is a subsidiary bank of IBRD.
(d) India has procured highest amount of international loan from IDA. Which one of the following statements is false ?
Which of the following is not the agency of World Bank ?
