Global Finance — Set 4

Correct Answer: D. Society for Worldwide Interbank Financial Telecommunication

• **Society for Worldwide Interbank Financial Telecommunication** = SWIFT is a global provider of secure financial messaging services that enables financial institutions to send and receive information about transactions. • **200+ countries** — SWIFT's network connects financial institutions across more than 200 countries and territories. • 💡 Wrong-option analysis: [Society for Western Interbank Financial Telecommunication]: Incorrect regional scope; [System for Worldwide Internal Finance Tracking]: Uses incorrect terms like 'System' and 'Tracking'; [System for World Investment and Financial Trade]: Uses incorrect terms like 'System' and 'Investment'.

Correct Answer: B. New Development Bank

• **New Development Bank** = NDB was established by the BRICS states (Brazil, Russia, India, China, and South Africa) to mobilize resources for infrastructure and sustainable development projects. • **Shanghai, China** — This is where the New Development Bank (NDB) is headquartered. • 💡 Wrong-option analysis: [National Development Bank]: Uses an incorrect term 'National'; [Net Development Board]: Uses incorrect terms 'Net' and 'Board'; [National Distribution Bank]: Uses incorrect terms 'National' and 'Distribution'.

Correct Answer: A. Financial Action Task Force

• **Financial Action Task Force** = FATF is an intergovernmental organization that sets global standards for combating money laundering and terrorist financing. • **1989** — The year FATF was established by the G7 to address financial crime. • 💡 Wrong-option analysis: [Federal Action on Trade and Finance]: Uses incorrect terms 'Federal' and 'Trade'; [Fiscal Assessment Task Force]: Uses an incorrect term 'Fiscal'; [Financial Association for Trade and Finance]: Uses incorrect terms 'Association' and 'Trade'.

Correct Answer: A. United Nations Conference on Trade and Development

• **United Nations Conference on Trade and Development** = UNCTAD is a permanent intergovernmental body established by the UN General Assembly focused on maximizing trade, investment, and development opportunities for developing countries. • **1964** — The year UNCTAD was established by the UN General Assembly. • 💡 Wrong-option analysis: [United Nations Committee for Technical and Asset Development]: Uses incorrect terms 'Committee' and 'Asset'; [Universal Network for Commercial Trade and Distribution]: Completely different organization name; [Universal Northern Conference on Trade and Debt]: Uses incorrect terms 'Universal Northern' and 'Debt'.

Correct Answer: A. African Development Bank

• **African Development Bank** = AfDB is a multilateral development finance institution aiming to foster economic development and social progress in African countries. • **1964** — The year the AfDB was founded with its mission for African development. • 💡 Wrong-option analysis: [African Development Bureau]: Uses an incorrect term 'Bureau'; [Asian Development Bank]: Refers to a different continent; [Associated Finance and Development Board]: Uses incorrect terms 'Associated Finance' and 'Board'.

Correct Answer: B. European Bank for Reconstruction and Development

• **European Bank for Reconstruction and Development** = EBRD was established to support the transition to market-oriented economies and promote private initiative in Central and Eastern Europe. • **1991** — The year EBRD was established to aid post-Cold War development in Europe. • 💡 Wrong-option analysis: [External Bank for Regional Development]: Uses incorrect terms 'External' and 'Regional'; [Eastern Board for Revenue and Distribution]: Completely different organization name; [European Bureau for Resource Distribution]: Uses incorrect terms 'Bureau' and 'Resource'.

Correct Answer: B. Asian Infrastructure Investment Bank

• **Asian Infrastructure Investment Bank** = AIIB is a multilateral development bank that focuses on infrastructure development in Asia. • **January 2016** — When AIIB began its operations, aiming to connect people, services, and markets through sustainable infrastructure. • 💡 Wrong-option analysis: [Asian Industry and Integration Bank]: Uses incorrect terms 'Industry' and 'Integration'; [All India Investment Bureau]: Incorrect scope and structure; [Associated International Investment Board]: Uses incorrect terms 'Associated International' and 'Board'.

Correct Answer: D. Organization of the Petroleum Exporting Countries

• **Organization of the Petroleum Exporting Countries** = OPEC is an intergovernmental organization of 13 nations that coordinates and unifies petroleum policies of its member countries. • **1960** — The year OPEC was founded in Baghdad by its first five members. • 💡 Wrong-option analysis: [Organization for Power and Energy Coordination]: Uses incorrect terms 'Power' and 'Energy'; [Oil Producing and Exporting Corporation]: Uses incorrect terms 'Producing' and 'Corporation'; [Oil and Petroleum Economic Council]: Uses incorrect terms 'Oil and Petroleum' and 'Economic Council'.

Correct Answer: A. General Agreement on Tariffs and Trade

• **General Agreement on Tariffs and Trade** = GATT was a legal agreement between many countries aimed at the substantial reduction of tariffs and other trade barriers. • **1995** — The year GATT was replaced by the World Trade Organization (WTO). • 💡 Wrong-option analysis: [Global Agreement on Technical Trade]: Uses incorrect terms 'Global' and 'Technical'; [General Authority on Tax and Treasury]: Uses incorrect terms 'Authority' and 'Tax and Treasury'; [Global Association for Trade and Travel]: Uses incorrect terms 'Global' and 'Travel'.

Correct Answer: B. Foreign Exchange Management Act

• **Foreign Exchange Management Act** = FEMA is an act of the Parliament of India that regulates foreign exchange, aiming to facilitate external trade and payments. • **1999** — The year FEMA replaced the Foreign Exchange Regulation Act (FERA). • 💡 Wrong-option analysis: [Federal Economic Management Agency]: Incorrect terms 'Federal' and 'Agency'; [Foreign External Management Act]: Uses an incorrect term 'External'; [Financial Equity Management Association]: Uses incorrect terms 'Financial Equity' and 'Association'.