Question

The original purpose of the _____ was to help build infrastructure in developing countries and to help relief the debt burden of these countries.

a. Federal Reserve Bank
b. Central Bank
c. World Bank
d. International Monetary Fund

Answer 1

The original purpose of the World Bank was to rebuild post-war economies and promote development in less developed countries by funding various infrastructure projects, with a significant shift towards global development after the Marshall Plan took precedence in Europe. So the correct answer is option C.

Step-by-step explanation:

The original purpose of the World Bank was to help build infrastructure in developing countries and to help relieve the debt burden of these countries. Established under the guidance of John Maynard Keynes, the World Bank's primary role was to rebuild the economies of countries devastated by war and to promote economic development in developing countries.

After the end of World War II, the World Bank adapted its focus from Europe to funding development projects worldwide in sectors such as power, irrigation, and transportation, providing loans to non-European countries like Chile. Together with the International Monetary Fund (IMF), the World Bank was created during the Bretton Woods Conference with a belief in global collective action to guarantee international economic stability and rebuild Europe.

However, unlike the IMF, which aims to promote global monetary stability and offers advice on fiscal plans to countries, the World Bank concentrates on raising funds to offer loans to less developed countries for their economic development and infrastructure projects.

Answer 2

The original purpose of the World Bank was to help rebuild economies damaged by war and to support economic development in developing countries; it later shifted to broader global development objectives.

Step-by-step explanation:

The original purpose of the World Bank was to help build infrastructure in developing countries and to help relieve the debt burden of these countries. Therefore, the correct answer to the student’s question is c. World Bank. During the Bretton Woods Conference, it was conceived to rebuild the economies of war-torn nations and to promote the economic development of developing countries. Its focus shifted when the Marshall Plan took over the reconstruction efforts in Europe, and the World Bank then moved to funding development projects around the world, like power generation, irrigation, and transportation.

Its first loan was to France, but soon it transitioned to providing loans like the one to Chile for hydroelectric power. In addition, the World Bank worked in collaboration with other organizations to aid less developed countries (LDCs) in economic development and offered advice on how to build their economies more effectively.

Over time the World Bank adapted its mission, moving from post-World War II construction to a broader aim of global economic development, aligning with international efforts to improve financial stability and provide support for developmental programs.