Global Finance — Set 3

Correct Answer: B. International Monetary Fund

• **International Monetary Fund** = The IMF is an organization of 190 countries working to foster global monetary cooperation. • Created in **1944** — at the Bretton Woods Conference. • 💡 Wrong-option analysis: [International Money Fund]: incorrect word 'Money'; [Indian Monetary Fund]: incorrect, it's an international body; [Internal Monetary Fund]: incorrect full form.

Correct Answer: C. World Trade Organization

• **World Trade Organization** = WTO is the only global international organization dealing with the rules of trade between nations. • Based in **Geneva, Switzerland** — its main goal is to help producers, exporters, and importers. • 💡 Wrong-option analysis: [World Tourism Organization]: a different UN agency; [World Technical Organization]: incorrect full form; [World Telecommunication Office]: incorrect full form.

Correct Answer: A. International Bank for Reconstruction and Development

• **International Bank for Reconstruction and Development** = IBRD is the original arm of the World Bank, providing loans and advisory services. • Owned by **189** member countries — it provides loans to middle-income and creditworthy low-income countries. • 💡 Wrong-option analysis: [Indian Bank for Rural Development]: incorrect, it's international; [Intercontinental Bank for Regional Development]: incorrect full form; [International Board for Revenue and Development]: incorrect full form.

Correct Answer: D. Asian Development Bank

• **Asian Development Bank** = ADB is a regional development bank established to promote social and economic development in Asia. • Headquartered in **Mandaluyong, Philippines** — it admits members of the UN Economic and Social Commission for Asia and the Pacific. • 💡 Wrong-option analysis: [Asian Development Bureau]: incorrect full form; [American Development Bank]: incorrect region; [African Development Bank]: incorrect region.

Correct Answer: B. Bank for International Settlements

• **Bank for International Settlements** = BIS is often called the 'central bank for central banks' and serves central banks in their pursuit of monetary and financial stability. • Established in **1930** — making it the oldest international financial organization. • 💡 Wrong-option analysis: [Board for Indian Statistics]: incorrect, it's international; [Bureau of International Standards]: a different organization (ISO); [Bank of Internal Systems]: incorrect full form.

Correct Answer: B. Organization for Economic Cooperation and Development

• **Organization for Economic Cooperation and Development** = OECD is an intergovernmental organization with 38 member countries that works to build better policies for better lives. • Has **38** member countries — providing a forum for governments to share experiences and seek solutions. • 💡 Wrong-option analysis: [Organization for Eastern Credit and Development]: incorrect full form; [Office for Economic Coordination and Distribution]: incorrect full form; [Office for European Cooperation and Development]: incorrect, it's broader than just European.

Correct Answer: B. International Finance Corporation

• **International Finance Corporation** = IFC is a member of the World Bank Group focused exclusively on the private sector in developing countries. • The **largest global development institution** — focused on encouraging the growth of businesses through investment and advisory services. • 💡 Wrong-option analysis: [Indian Finance Corporation]: incorrect, it's international; [International Finance Commission]: incorrect full form; [Internal Financial Council]: incorrect full form.

Correct Answer: D. International Development Association

• **International Development Association** = IDA is part of the World Bank that helps the world’s poorest countries. • Established in **1960** — it provides grants and low to zero-interest loans. • 💡 Wrong-option analysis: [Indian Development Authority]: incorrect, it's international; [Internal Development Agency]: incorrect full form; [International Distribution Association]: incorrect full form.

Correct Answer: C. Multilateral Investment Guarantee Agency

• **Multilateral Investment Guarantee Agency** = MIGA is a member of the World Bank Group whose mandate is to promote foreign direct investment into developing countries. • Established in **1988** — its mandate is to promote foreign direct investment into developing countries. • 💡 Wrong-option analysis: [Management of Investment and Growth Association]: incorrect full form; [Maintenance of International Global Assets]: incorrect full form; [Multinational Investment Guarantee Agency]: incorrect word 'Multinational' instead of 'Multilateral'.

Correct Answer: D. Special Drawing Rights

• **Special Drawing Rights** = SDRs are an international reserve asset created by the IMF to supplement its member countries' official reserves. • Value calculated based on a **basket of major world currencies** — it is not a currency but a potential claim on freely usable currencies. • 💡 Wrong-option analysis: [Standard Deposit Rate]: incorrect full form; [Special Deposit Rights]: incorrect word 'Deposit'; [Systematic Debt Reform]: incorrect full form.