Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD) : I. It provides loans and guarantees to middle income countries. II. It works single-handedly to help developing countries to reduce poverty. III. It was established to help Europe rebuild after the World War II. Which of the statements given above are correct?
- A.I and II only
- B.II and III only
- C.I and III only
- D.I, II and III
Correct answer
Explanation
The correct answer is C, I and III only. Statement II is wrong because the IBRD works alongside other World Bank Group institutions and partners, not single-handedly.
The IBRD was set up at the Bretton Woods Conference in 1944, together with the IMF. Its first task was to finance the rebuilding of Europe after the Second World War; its first loan, in 1947, went to France. Today it lends to middle-income and creditworthy lower-income countries and offers guarantees and advice. With the International Development Association (IDA), which gives cheap loans and grants to the poorest countries, it forms the World Bank. The wider World Bank Group also includes the IFC, MIGA and ICSID, and they work together on ending extreme poverty.
A is wrong because it includes the false statement II. B is wrong because it includes statement II and leaves out the true statement I. D is wrong because statement II is false.
Exam tip: IBRD + IDA = World Bank; the World Bank Group adds IFC, MIGA and ICSID.
Practice Questions
View allConsider the following statements : Human capital formation as a concept is better explained in terms of a process which enables
1. individuals of a country to accumulate more capital.
2. increasing the knowledge, skill levels and capacities of the people of the country.
3. accumulation of tangible wealth.
4. accumulation of intangible wealth.
Which of the statements given above is/are correct ?
- A.1 and 2
- B.2 only
- C.2 and 4
- D.1, 3 and 4
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Human capital formation means raising people's knowledge, skills and abilities, which is a form of intangible wealth. Human capital is the stock of education, skill, health and experience that makes people productive.
Read the full explanation →Consider the following statements :
1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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Procurement at MSP is limited, and MSP is a floor price that market prices often exceed. The Government announces MSPs for 22 mandated crops on the recommendation of the Commission for Agricultural Costs and Prices (CACP).
Read the full explanation →Increase in absolute and per capita real GNP do not connote a higher level of economic development, if
- A.industrial output fails to keep pace with agricultural output.
- B.agricultural output fails to keep pace with industrial output.
- C.poverty and unemployment increase.
- D.imports grow faster than exports.
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Economic development means better lives for people, so rising income alone is not development if poverty and joblessness are growing.
Read the full explanation →Consider the following statements :
1. Coal sector was nationalized by the Government of India under Indira Gandhi.
2. Now, coal blocks are allocated on lottery basis.
3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.
Which of the statements given above is/are correct?
- A.1 only
- B.2 and 3 only
- C.3 only
- D.1, 2 and 3
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The coal industry was nationalised under Indira Gandhi, but coal blocks are not given by lottery and India still imports coal.
Read the full explanation →If a commodity is provided free to the public by the Government, then
- A.the opportunity cost is zero.
- B.the opportunity cost is ignored.
- C.the opportunity cost is transferred from the consumers of the product to the tax-paying public.
- D.the opportunity cost is transferred from the consumers of the product to the Government.
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A free good still uses up resources, and taxpayers pay for them. Opportunity cost is the value of the next best alternative given up when resources are used for something.
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