Regional Banks — Set 4

Correct Answer: C. ADB

• **ADB (Asian Development Bank)** = It is the largest regional development bank in Asia by membership count. • **68 members** — ADB currently has this many members, including 49 from the region and 19 from other parts of the world. • 💡 Wrong-option analysis: NDB: It is the New Development Bank, established by BRICS nations, not the largest regional bank in Asia; AIIB: Asian Infrastructure Investment Bank has a large membership but fewer than ADB; IsDB: Islamic Development Bank focuses on Muslim-majority countries, not the largest regional bank in Asia by membership.

Correct Answer: B. Jeddah

• **Jeddah** = This city in Saudi Arabia is the headquarters of the Islamic Development Bank (IsDB). • **1975** — The IsDB was officially inaugurated in this year to foster economic development in Muslim-majority countries. • 💡 Wrong-option analysis: Dubai: It is a major financial hub but not the IsDB headquarters; Riyadh: It is the capital of Saudi Arabia but not where the IsDB headquarters is located; Doha: It is the capital of Qatar, not the IsDB headquarters.

Correct Answer: B. EU member states

• **EU member states** = The European Investment Bank (EIB) primarily focuses on supporting projects within these countries. • **European Union** — The EIB serves as the lending arm of this economic and political union. • 💡 Wrong-option analysis: Developing countries: While EIB lends a small percentage to countries outside the EU, it is not its primary focus; African nations: This is the primary focus of the African Development Bank, not EIB; Asian markets: This is the focus of Asian-centric development banks, not EIB.

Correct Answer: C. Japan and USA

• **Japan and the United States** = These two countries are the current largest and equal shareholders of the Asian Development Bank (ADB). • **15.6%** — Both countries hold approximately this percentage of ADB's total subscribed capital, giving them significant influence. • 💡 Wrong-option analysis: China: It is a significant shareholder but not the largest; India: It is a major member but not the largest shareholder; Australia: It is a contributing member but not the largest shareholder.

Correct Answer: B. Owned by several countries

• **Owned by several countries** = This is how Multilateral Development Banks (MDBs) are typically structured, being international financial institutions. • **Multiple nations** — MDBs are founded by these to provide loans and professional advice for development purposes. • 💡 Wrong-option analysis: Owned by one country: Such an institution would be a national development bank, not multilateral; Private banks: These are privately owned for profit, not public development institutions; Commercial banks: These primarily offer services to individuals and businesses for profit, distinct from development banks.

Correct Answer: C. BRICS

• **BRICS** = The New Development Bank (NDB) was established by these nations during their 6th summit. • **2014** — The NDB was established in this year as an alternative to existing American and European-dominated financial institutions. • 💡 Wrong-option analysis: ASEAN: This is the Association of Southeast Asian Nations, not involved in NDB's establishment; SAARC: This is the South Asian Association for Regional Cooperation, not involved in NDB's establishment; G20: This is the Group of Twenty major economies, a broader group, but NDB is a specific BRICS initiative.

Correct Answer: D. Côte d'Ivoire

• **Côte d'Ivoire** = The headquarters of the African Development Bank (AfDB) is located in Abidjan, a city in this country. • **Abidjan** — This city is the current headquarters of the AfDB, having returned there after a temporary relocation during a civil war. • 💡 Wrong-option analysis: Nigeria: It is a major African economy but not where AfDB's headquarters is located; Egypt: It is another significant African nation but not where AfDB's headquarters is located; South Africa: It is a BRICS member and major African economy but not where AfDB's headquarters is located.

Correct Answer: A. AIIB

• **AIIB (Asian Infrastructure Investment Bank)** = This regional bank was established specifically to support infrastructure projects in Asia. • **2014** — The AIIB was established in this year, focusing on bridging the massive infrastructure gap in the Asian region. • 💡 Wrong-option analysis: NDB: It is the New Development Bank, established by BRICS nations, with a broader scope than just Asian infrastructure; ADB: It is the Asian Development Bank, an older institution with a broader development mandate; EIB: It is the European Investment Bank, which focuses on EU member states, not Asia.

Correct Answer: C. Washington D.C.

• **Washington D.C.** = This city in the USA is the headquarters of the Inter-American Development Bank (IDB). • **1959** — The IDB was established in this year and is the largest source of development financing for Latin America and the Caribbean. • 💡 Wrong-option analysis: Brasilia: It is the capital of Brazil, but not the IDB headquarters; Mexico City: It is the capital of Mexico, but not the IDB headquarters; Buenos Aires: It is the capital of Argentina, but not the IDB headquarters.

Correct Answer: C. London

• **London** = This city in the United Kingdom is the headquarters of the European Bank for Reconstruction and Development (EBRD). • **1991** — The EBRD was established in this year to help countries in Central and Eastern Europe transition to market economies. • 💡 Wrong-option analysis: Paris: It is a major European capital but not EBRD headquarters; Berlin: It is the capital of Germany but not EBRD headquarters; Brussels: It is a major EU hub but not EBRD headquarters.