What is a primary function of the World Bank?

• A. Provides concessional and non-concessional loans for development
• B. Enforces military interventions to stabilize states
• C. Lends only to private sector projects
• D. Sets global tax rates for member countries

Answer: (A)

The World Bank mainly exists to fund development in poorer countries, offering financial support and technical expertise to help build infrastructure, improve health and education, and strengthen governance. It does this through loans in two main forms: concessional loans with very favorable terms for the poorest nations and non-concessional loans at near-market terms for other developing countries. It also provides grants and advisory services. The Bank does not engage in military interventions, it isn’t limited to funding only private-sector projects (it also finances public-sector development, with a separate arm focusing on private investment), and it does not set global tax rates. So the loan-oriented development support is the best description of its primary function.