Which institution provides loans to developing countries for development?

• A. IMF
• B. World Bank
• C. Asian Development Bank
• D. International Finance Corporation

Answer: (B)

The key idea is identifying the global lender whose primary mission is financing development projects in poorer countries. The World Bank is built around providing long-term loans and grants for development projects—things like roads, schools, hospitals, and other infrastructure—aimed at reducing poverty and promoting growth. It operates through two main arms: one that lends to governments for public sector projects and another that supports the poorest countries. That broad, development-focused lending role makes it thego-to institution for financing development in developing countries.

The IMF mainly handles macroeconomic stabilization and balance-of-payments support, not long-term development projects. The Asian Development Bank works regionally in Asia, offering development loans there, which is important but narrower in scope than the World Bank’s global reach. The International Finance Corporation is the private-sector arm of the World Bank Group, financing private investments rather than providing general development loans to governments.