Identify the specific components of an institution
International Finance” Please respond to the following:Based on the lecture and Webtext materials, address the following:The IMF and World Bank are the worlds two leading lending institutions, but much of their monetary assistance disappears once it enters the banking systems of developing countries. Cite concrete evidence that supports the assertion that much assistance to developing countries is simply stolen by officials. Determine other main factors that account for the misuse of these funds.week 8″Institutions” Please respond to the following:Based on the lecture and Webtext materials, address the following:Every country in the world is constructed around the same set of institutional frameworks that differ only in how governments manage them. Identify the specific components of an institution. Next, use two examples of institutionssuch as a financial system, a judicial system, or the armed forcesto illustrate what developing countries overall have done to weaken or strengthen such institutions.”International Finance” Please respond to the following:”Institutions” Please respond to the following:The company is considering three options:a) Borrowing U.S. dollars from a U.S. bank at 8% interest rateb) Borrowing British pounds from the Royal Bank of London at 10% interest ratec) Borrowing Euros from the Deutsche Bank in Frankfurt at 5% interest rateIf XCF borrows in foreign currency, they will have to convert it immediately in dollars at today s spot rate. In one year s time, they will have to pay back the bank in the currency they borrowed it plus interest. To do so, they will convert U.S. dollars using the spot rate in a year s timeCurrently, the exchange rates are: 1 Euro = $1.50 and 1 British Pound = $2.00. The estimate of XCF s CFO is that in one year, the British Pound will depreciate relative to the U.S. Dollar by 10% and the Euro will appreciate relative to the U.S. Dollar by 5%. From which bank should XCF borrow and why? Show all your calculations!