Global Finance — Set 3

Correct Answer: B. International Monetary Fund

The IMF is the International Monetary Fund, an organization of 190 countries working to foster global monetary cooperation. It was created in 1944 at the Bretton Woods Conference. It plays a central role in the management of balance of payments difficulties.

Correct Answer: C. World Trade Organization

WTO stands for the World Trade Organization, the only global international organization dealing with the rules of trade between nations. Its main goal is to help producers of goods and services, exporters, and importers conduct their business. It is based in Geneva, Switzerland.

Correct Answer: A. International Bank for Reconstruction and Development

IBRD stands for the International Bank for Reconstruction and Development, which is the original arm of the World Bank. It provides loans, guarantees, and advisory services to middle-income and creditworthy low-income countries. It is owned by 189 member countries.

Correct Answer: D. Asian Development Bank

ADB stands for the Asian Development Bank, a regional development bank established to promote social and economic development in Asia. It is headquartered in Mandaluyong, Philippines. The bank admits members of the UN Economic and Social Commission for Asia and the Pacific.

Correct Answer: B. Bank for International Settlements

BIS is the Bank for International Settlements, often called the 'central bank for central banks'. It serves central banks in their pursuit of monetary and financial stability. It was established in 1930 and is the oldest international financial organization.

Correct Answer: B. Organization for Economic Cooperation and Development

OECD is the Organization for Economic Cooperation and Development, an intergovernmental organization with 38 member countries. It works to build better policies for better lives. It is a forum where governments can work together to share experiences and seek solutions to common problems.

Correct Answer: B. International Finance Corporation

IFC stands for the International Finance Corporation, a member of the World Bank Group. It is the largest global development institution focused exclusively on the private sector in developing countries. It provides investment and advisory services to encourage the growth of businesses.

Correct Answer: D. International Development Association

IDA is the International Development Association, part of the World Bank that helps the world’s poorest countries. It provides grants and low to zero-interest loans for projects that boost economic growth and reduce poverty. It was established in 1960.

Correct Answer: C. Multilateral Investment Guarantee Agency

MIGA stands for the Multilateral Investment Guarantee Agency, a member of the World Bank Group. Its mandate is to promote foreign direct investment into developing countries. It does this by offering political risk insurance and credit enhancement to investors and lenders.

Correct Answer: D. Special Drawing Rights

SDR stands for Special Drawing Rights, an international reserve asset created by the IMF to supplement its member countries' official reserves. It is not a currency but a potential claim on the freely usable currencies of IMF members. Its value is calculated based on a basket of major world currencies.