World Bank & IMF — Set 3
World Organizations · विश्व बैंक और IMF · Questions 21–30 of 50
Which publication by the IMF provides a detailed assessment of global economic developments?
Correct Answer: A. World Economic Outlook
The World Economic Outlook (WEO) is published twice a year and provides projections for global growth. It analyzes key issues affecting the international economy. Economists and investors closely monitor these forecasts for market planning.
What is the primary source of funds for the World Bank's IBRD loans?
Correct Answer: C. Borrowing on international capital markets
The IBRD raises most of its money on the world's financial markets by issuing bonds. Because of its high credit rating, it can borrow at low costs and pass those savings to developing countries. This sustainable model allows it to lend billions of dollars every year.
In the World Bank Group, which agency is responsible for settling legal disputes between investors and nations?
Correct Answer: C. ICSID
The International Centre for Settlement of Investment Disputes (ICSID) handles legal arbitration. It was established in 1966 to reduce non-commercial risks for international investors. This makes it safer for companies to invest in foreign infrastructures and projects.
The IMF's 'Article IV Consultations' primarily involve which activity?
Correct Answer: A. Economic health check of member countries
Article IV consultations are annual visits by IMF staff to member countries to review economic and financial policies. They discuss the country's economic risks and provide advice on policy adjustments. These reports are generally made public to increase transparency.
Which of the following is a key difference between the World Bank and the IMF?
Correct Answer: D. World Bank focuses on development, IMF focuses on monetary stability
The World Bank focuses on long-term development and poverty reduction through project-based lending. The IMF is primarily concerned with the short-term stability of the international monetary system. They complement each other in managing global economic health.
What happens when a country 'draws' from the IMF?
Correct Answer: A. It buys foreign currency with its own currency
Drawing from the IMF is technically a purchase where a member country pays in its own currency to receive foreign exchange. The country later 'repurchases' its own currency with the foreign currency plus interest. This is the mechanism used for IMF financial assistance.
The 'Doing Business' report, which ranked countries based on ease of business, was a former publication of?
Correct Answer: D. World Bank
The World Bank published the Doing Business report for nearly two decades to evaluate business regulations. It influenced many countries to implement reforms to attract more investment. The report was discontinued in 2021 due to internal data irregularities.
Which currency was added to the SDR basket in 2016?
Correct Answer: A. Chinese Renminbi (Yuan)
The Chinese Renminbi became the fifth currency in the SDR basket, joining the US Dollar, Euro, Yen, and Pound Sterling. This recognized China's growing importance in the global financial system and trade. The basket is reviewed every five years to reflect the importance of world currencies.
What is the 'Board of Governors' in the context of the World Bank and IMF?
Correct Answer: D. The highest decision-making body
The correct answer is 'The highest decision-making body'. The Board of Governors is the top authority where each member country is represented by a Governor (usually a finance minister). They meet once a year at the Annual Meetings to decide on major policy issues. They delegate most daily operations to the Executive Boards.
The 'Poverty and Shared Prosperity' report is issued by which institution?
Correct Answer: D. World Bank
This report provides the latest estimates and trends in global poverty and income inequality. It monitors progress toward the World Bank's goal of ending extreme poverty by 2030. It uses a standard poverty line to compare data across different countries.