Consider the following situations.The World Bank offers to make a loan to a company in an impoverished nation at a lower interest rate than the company had been about to agree to pay to borrow the same amount from a group of private banks.The above situation indicates that the world bank ____________.The World Bank makes a loan to a company in a developing nation that has not yet received formal approval to operate there, even though the government approval process typically takes 15 months.The above situation indicates that the world bank ________________..The IMF extends a loan to a developing nation's government, with no preconditions, to enable the government to make already overdue payments on a loan it had previously received from the World Bank.The above situation indicates that the IMF _______________.
1. is not effectively following its own stance2. is investing in dead capital3. is facing moral hazard.