BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Asian Infrastructure Investment Bank (AIIB)
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Organization of the Petroleum Exporting Countries (OPEC)
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Asian Development Bank (ADB)
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International Development Association (IDA)
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Detailed explanation-1: -The International Development Association (IDA) (French: Association internationale de développement) is an international financial institution which offers concessional loans and grants to the world’s poorest developing countries.
Detailed explanation-2: -The ADB offers “hard” loans on commercial terms primarily to middle income countries in Asia and “soft” loans with lower interest rates to poorer countries in the region.
Detailed explanation-3: -The main objective of the IDA is to provide grants and concessional loans to the world’s poorest countries. It lends to developing countries with the lowest Gross National Income (GNI), having troubled creditworthiness, & having very low per capita income.
Detailed explanation-4: -The International Development Association (IDA) is a multinational financial institution providing aid to poor countries in the form of loans. It is also referred to as soft loan window of the World Bank.
Detailed explanation-5: -The International Development Association (IDA) is known as the soft loan window of the World Bank. It is because IDA provides loans in the interest rates below the market rates. The soft financing is also done in ways such as loan holidays or long repayment periods for the borrowers.