WBCS.LIVE practice question

Which specialized institution operating within the World Bank Group specifically provides political risk insurance to foreign investors?

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 Centre for Settlement of Investment Disputes (ICSID)
  4. International Development Association (IDA)

Correct answer and explanation

Correct answer: Multilateral Investment Guarantee Agency (MIGA)

Explanation: āœ… Correct Answer: B) Multilateral Investment Guarantee Agency (MIGA) šŸ“š Explanation: The Multilateral Investment Guarantee Agency (MIGA) is a highly specialized member organization of the World Bank Group that was established in 1988. Its primary mandate is to aggressively promote foreign direct investment into developing countries by offering robust political risk insurance and credit enhancement. MIGA specifically protects cross-border corporate investments against non-commercial risks like government expropriation, currency inconvertibility, and regional political violence.