Development Financial Institutions (DFIs)

11. DFIs are known for their expertise in:

a) Risk assessment and management

b) Corporate social responsibility

c) Speculative investments

d) All of the above

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12. DFIs can help stimulate economic development in rural areas by:

a) Providing financial support to farmers

b) Investing in infrastructure projects

c) Supporting microfinance institutions

d) All of the above

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13. DFIs can act as catalytic agents by:

a) Mobilizing additional investments

b) Coordinating development projects

c) Promoting policy reforms

d) All of the above

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14. DFIs may have a greater tolerance for risk compared to traditional commercial banks. This allows them to:

a) Provide financing to high-risk ventures

b) Offer loans with lower interest rates

c) Avoid involvement in socially responsible projects

d) None of the above

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15. DFIs focus on long-term investments because:

a) Long-term projects have higher returns

b) They aim to create sustainable impact

c) Short-term investments are less profitable

d) None of the above

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