35. Moral hazard inhibits the financing of global growth because A. Firms someti

ID: 1097191 • Letter: 3

Question

35. Moral hazard inhibits the financing of global growth because

A. Firms sometimes have trouble determining whether they need funds or not

B. If investors have trouble identifying high-risk firms they may be unwilling to give moeny to creditworthy firms

C. There is the posibility that the funds are used for riskier behavior than the lender agreed to

D. There are differences between financing using loans, portfolio investment and foreign direct investment

36. Which of the folowing is true about the World Bank?

A. It is a mulitnational agency that specializes in development loans

B. It is a U.S. agency that specializes in development loans

C. It is a U.N. sponsored agency that specializies in development loans

D. It is made up of all central banks in the world.

37. The multinational organiation that aims to promote world economic growth by fostering financial stability is the

A. Internation Monetary Fund

B. World Trade Organization

C. United Nations

D. World Bank

The correct answers are:

35) Answer is option = C = There is the posibility that the funds are used for riskier behavior than the lender agreed to.

36) Answer is option = C = It is a U.N. sponsored agency that specializies in development loans.

37) Answer is option = D = World Bank.

Hope my solution solves your query.

Regards

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