Which service is commonly provided by international financial institutions to support development?

Which service is commonly provided by international financial institutions to support development?

• A. Sanctions
• B. Loans
• C. Military training
• D. Trade tariffs

Answer: (B)

International financial institutions support development mainly by providing financing in the form of loans. They pool capital from global markets and lend it to governments or development projects, often with long repayment terms and, for poorer countries, concessional rates. This funding makes it possible to invest in infrastructure, health, education, and other public services that drive growth and reduce poverty. They may also offer technical assistance and policy guidance, but the core service that enables development is the access to financial resources for big projects. Sanctions, military training, and trade tariffs are not services these institutions provide, so loans are the best match.

International financial institutions support development mainly by providing financing in the form of loans. They pool capital from global markets and lend it to governments or development projects, often with long repayment terms and, for poorer countries, concessional rates. This funding makes it possible to invest in infrastructure, health, education, and other public services that drive growth and reduce poverty. They may also offer technical assistance and policy guidance, but the core service that enables development is the access to financial resources for big projects. Sanctions, military training, and trade tariffs are not services these institutions provide, so loans are the best match.