1. Moral hazard inhibits the financing of global growth because
A. Firms sometimes have trouble determining whether they need funds or not
B. If investors have trouble identifying high-risk firms they may be unwilling to give money to creditworthy firms
C. There is the possibility that the funds are used for riskier behaviour than the lender agreed to
D. There are differences between financing using loans, portfolio investment and foreign direct investment
2. Which of the following is true about the World Bank?
A. It is a multinational agency that specializes in development loans
B. It is a U.S. agency that specializes in development loans
C. It is a U.N. sponsored agency that specializes in development loans
D. It is made up of all central banks in the world.
3. The multinational organization that aims to promote world economic growth by fostering financial stability is the
A. International Monetary Fund
B. World Trade Organization
C. United Nations
D. World Bank