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What are the characteristics of the loans provided by the International Development Association (IDA) to member countries?Select one:a.They are on liberal terms with regard to the rate of interestb.They are on liberal terms with regard to the period of repaymentc.They can be repaid in the currency of the member countryd.All of these

Question

What are the characteristics of the loans provided by the International Development Association (IDA) to member countries?Select one:a.They are on liberal terms with regard to the rate of interestb.They are on liberal terms with regard to the period of repaymentc.They can be repaid in the currency of the member countryd.All of these

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Solution

d. All of these

The International Development Association (IDA) provides loans to member countries with the following characteristics:

a. They are on liberal terms with regard to the rate of interest: The IDA provides loans at low or no interest rates, making it easier for developing countries to afford them.

b. They are on liberal terms with regard to the period of repayment: The IDA allows for long repayment periods. This can be up to 30 to 40 years, including a 5 to 10-year grace period.

c. They can be repaid in the currency of the member country: This means that countries can repay their loans in their own currency, reducing the risk of currency fluctuations and making repayment more manageable.

So, all of these characteristics are true for the loans provided by the IDA to its member countries.

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