A business owner is looking for a loan to fund a large-scale infrastructure expansion project. An advisor suggests approaching a Development Finance Institution (DFI). Which of the following best describes how DFIs primarily source their long-term funds to finance such projects?

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Economics · Economy

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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DFIs generally use a combination of market borrowings, government-backed bonds, and long-term institutional funding.

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Answer 1

DFIs rely exclusively on direct international aids and immediate central government subsidies.

Answer 2

DFIs generally use a combination of market borrowings, government-backed bonds, and long-term institutional funding.

Answer 3

DFIs primarily raise funds by issuing short-term commercial papers and unsecured loans.

Answer 4

DFIs rely mainly on short-term commercial bank loans and small retail deposits from the public.

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