Development Financial Institutions (DFIs)

31. Which of the following is NOT a potential risk faced by DFIs?

a) Political and regulatory risks

b) Interest rate fluctuations

c) Market competition

d) None of the above

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32. DFIs often have sustainability criteria for project financing. This means they consider:

a) Social impact and inclusivity

b) Environmental sustainability

c) Financial viability and profitability

d) All of the above

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33. DFIs can help countries achieve their development goals by:

a) Mobilizing domestic and international resources

b) Channeling investments to priority sectors

c) Supporting capacity building and skills development

d) All of the above

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34. DFIs can help reduce income inequality by:

a) Providing financial services to marginalized populations

b) Supporting inclusive business models

c) Promoting fair labor practices

d) All of the above

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35. DFIs often provide funding on concessional terms, which means:

a) Lower interest rates compared to commercial banks

b) Longer repayment periods

c) Flexible repayment terms

d) All of the above

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