Which of the following statements related to World Bank are correct ? i. The World Bank was established…
Statement i is incorrect because providing short-term assistance to address balance-of-payments imbalances is the objective of the International Monetary Fund (IMF), whereas…
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Which of the following statements related to World Bank are correct ?
i. The World Bank was established with the objective of providing short term assistance to address imbalances in the balance of payments.
ii. The members of the World Bank must also be members of the International Monetary Fund.
iii. The World Bank began operating with an authorized capital of 50 billion US dollars.
iv. India was one of the five largest contributors at the time of World Bank's establishment.
Answer and explanation
Correct answer D
Statement i is incorrect because providing short-term assistance to address balance-of-payments imbalances is the objective of the International Monetary Fund (IMF), whereas the World Bank (IBRD) was established for post-war reconstruction and long-term development financing. Statement iii is incorrect because the World Bank began with an authorized capital of 10 billion US dollars (not 50 billion US dollars). Statements ii and iv are correct: IMF membership is a prerequisite for World Bank membership, and India was among the five largest participating subscribers when the World Bank began operations.
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RPSC School Lecturer (School Education)