WBCS.LIVE practice question

Which institution is commonly known as the "soft loan window" of the World Bank?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. International Finance Corporation (IFC)
  2. Multilateral Investment Guarantee Agency (MIGA)
  3. International Development Association (IDA)
  4. International Bank for Reconstruction and Development (IBRD)

Correct answer and explanation

Correct answer: International Development Association (IDA)

Explanation: āœ… Correct Answer: C) International Development Association (IDA) šŸ“š Explanation: The International Development Association (IDA) is a member of the World Bank Group that specializes in offering concessional loans and grants to the world's poorest developing countries. These loans are often referred to as "soft loans" because they carry zero or extremely low interest rates and feature exceptionally long repayment periods. This financial structure is designed to promote economic development without imposing crippling debt burdens.