World Bank & IMF — Set 5
World Organizations · विश्व बैंक और IMF · Questions 41–50 of 50
The World Bank and IMF are often known as the 'Bretton Woods Twins' because they were established at the same?
Correct Answer: C. Monetary conference
Both were created at the 1944 Bretton Woods Conference to stabilize the global economy. This conference set the rules for the commercial and financial relations among the world's major industrial states. They are the cornerstones of the modern international financial architecture.
What is the primary currency unit used by the IMF for its internal accounts?
Correct Answer: B. Special Drawing Rights (SDR)
The correct answer is 'Special Drawing Rights (SDR)'. The IMF uses the SDR as its unit of account to avoid the fluctuations of any single national currency. SDRs are allocated to member countries based on their quotas. The value of the SDR is calculated daily based on a basket of major world currencies.
The acronym 'IBRD' stands for?
Correct Answer: B. International Bank for Reconstruction and Development
IBRD stands for the International Bank for Reconstruction and Development. It is the original arm of the World Bank that provides loans to sovereign governments. Its first loan was given to France for post-war reconstruction in 1947.
Which organization of the World Bank Group deals with the settlement of legal disputes between foreign investors and host countries?
Correct Answer: A. ICSID
ICSID stands for the International Centre for Settlement of Investment Disputes. It provides a neutral forum for resolving conflicts between governments and foreign companies. This helps increase confidence and encourages investment in developing nations.
The 'Managing Director' is the title of the head of which organization?
Correct Answer: B. IMF
The head of the IMF is known as the Managing Director, while the head of the World Bank is called the President. Historically, the Managing Director has always been a European. This tradition is part of an informal power-sharing agreement with the United States.
What is the primary function of the International Development Association (IDA)?
Correct Answer: C. Lending and grants to the poorest nations
The IDA focuses on the world's 75 poorest countries, many of which are in Africa. It provides credits and grants for projects that boost economic growth and improve living conditions. These loans are often interest-free and have very long repayment periods.
Which international financial institution is primarily concerned with exchange rate stability?
Correct Answer: B. IMF
The IMF was created specifically to oversee the international monetary system and maintain stable exchange rates. It helps countries that are struggling with their balance of payments. Stable currencies are essential for predictable and healthy international trade.
The term 'Quota' in the IMF refers to?
Correct Answer: B. A country's financial contribution and voting power
A member's quota determines its maximum financial commitment to the IMF and its voting power. Quotas are calculated based on a country's economic size and its openness to trade. They are reviewed periodically to reflect changes in the world economy.
The World Bank is a group of how many closely associated institutions?
Correct Answer: B. Five
The World Bank Group consists of five institutions: IBRD, IDA, IFC, MIGA, and ICSID. Together, they address different aspects of economic development and poverty reduction. They work with both governments and the private sector.
Who is currently the largest shareholder in the World Bank Group?
Correct Answer: D. United States
The United States is the largest shareholder and holds the most voting power in the World Bank. Because of this, it has a significant influence on the bank's policies and leadership. Voting shares are based on the capital contributions made by each member country.