Q1. World Bank loan is given to
(a) Make available the currency of a particular country in case of shortage
(b) Countries for sound projects for development purposes
(c) Improve the social and cultural conditions of a country
(d) None of these
(UPSC Prelims 1984)
Answer: (b) Countries for sound projects for development purposes
Explanation: The World Bank provides loans to countries for development projects such as infrastructure, education, health, and poverty reduction. These loans are meant to support economic growth and sustainable development, based on project viability and impact.
Q2. The World Bank provides loans to the underdeveloped countries at the rate of
(a) 6.1 %
(b) 2.5 %
(c) 5.5 %
(d) 5.2 %
(UPSC Prelims 1987)
Answer: (c) 5.5 %
Explanation: During the mid-1980s, the World Bank offered loans to developing countries at an average interest rate of around 5.5%, aimed at financing infrastructure, education, and poverty reduction programs.