Which specialized United Nations agency makes loans to countries for economic development and poverty reduction?

• A. UNDP
• B. World Bank
• C. IMF
• D. WTO

Answer: (B)

The main idea is identifying who provides funding specifically for development and reducing poverty. The World Bank’s core role is to finance development projects in countries around the world and help lift people out of poverty. It offers long‑term loans and credits through its lending arms, supporting infrastructure like roads and electricity, health and education systems, water and sanitation, and climate-resilient programs. It also provides grants and technical assistance to help governments plan, implement, and sustain projects. By contrast, UNDP focuses on policy advice and technical support rather than lending; the IMF provides macroeconomic stabilization loans with conditions; and the WTO sets trade rules rather than funding development. Therefore, the World Bank is the best fit for loans aimed at development and poverty reduction.