Explore the critical relationship between India and global financial institutions like the World Bank and IMF through our comprehensive article, India and World Bank & IMF GK MCQs With Answer & Explanation in English. This article offers a series of insightful multiple-choice questions, complete with detailed explanations, to enhance your understanding of India’s role, contributions, and collaborations with these institutions.
Perfect for competitive exams and general knowledge enthusiasts alike, this resource is your gateway to mastering key concepts.
1. Which among the following are called “Breton Wood Twins”?
- IBRD & IMF
- IDA & IFC
- IDA & MIGA
- IMF & IDA
Show Answer
Answer: IBRD & IMF
The planners at Bretton Woods established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), which today is part of the World Bank Group: This statement is accurate. The Bretton Woods Conference, held in 1944, led to the creation of key international financial institutions. The IMF was established to promote international monetary cooperation and exchange rate stability, facilitate the balanced growth of international trade, and provide resources to member countries facing balance of payments problems. The IBRD, now part of the World Bank Group, was established to provide loans to help rebuild European nations after World War II and later expanded its focus to support development projects in developing countries.
2. Which of the following institution releases the “World Economic Outlook Report”?
- World Bank
- Federal Reserve Bank
- International Monetary Fund
- International Finance Corporation
Show Answer
Answer: International Monetary Fund
The “World Economic Outlook Report” is released by the International Monetary Fund (IMF): This statement is correct. The World Economic Outlook (WEO) is a publication by the IMF that provides in-depth analysis and forecasts of the global economy. It covers economic developments, financial markets, emerging markets, and other key topics, offering valuable insights into the state of the world economy.
3. Which among the following helps to solve the balance of payments problem of member countries?
- World Bank
- International Monetary Fund
- Asian Development Bank
- World Economic Forum
Show Answer
Answer: International Monetary Fund
The IMF keeps track of the economy globally and in member countries, lends to countries with balance of payments difficulties, and gives practical help to members: This statement is accurate. The IMF serves multiple functions, including monitoring the global economy, offering financial assistance to member countries facing balance of payments problems, and providing policy advice and technical assistance to help countries maintain economic stability.
4. Which among the following is considered an important power of the World Bank?
- World Bank has the right to insist on pegged parities.
- World Bank has the right to float Bonds and use the proceeds for loans.
- World Bank has the right to buy gold below current Gold prices.
- All the above.
Show Answer
Answer: World Bank has the right to float Bonds and use the proceeds for loans.
An important power of the World Bank is that it has the right to float Bonds and use the proceeds for loans: This statement is correct. One of the significant functions of the World Bank is to raise funds through bond issuances in the international financial markets. The proceeds from these bonds are used to provide loans to member countries for various development projects, infrastructure, and poverty reduction initiatives.
5. Which among the following is commonly called the “Soft Loan Window” of the World Bank?
- International Monetary Fund
- International Finance Corporation
- International Development Association
- WTO
Show Answer
Answer: International Development Association
The “Soft Loan Window” of the World Bank is commonly known as the International Development Association (IDA): This statement is accurate. The International Development Association (IDA) is often referred to as the World Bank’s “soft loan window.” IDA provides low-interest or interest-free loans, grants, and credits to the world’s poorest countries. These funds are typically directed toward projects aimed at reducing poverty and promoting economic development.
6. Consider the following:
1. International Monetary Fund
2. World Bank
3. World Trade Organization
4. US Treasury Department
Which among the above institutions were part of the Washington Consensus?
- 1 & 2
- 1, 2 & 3
- 1, 2 & 4
- 1, 2, 3, 4
Show Answer
Answer: 1 & 2
The Washington Consensus included the International Monetary Fund (IMF) and the World Bank among its institutions: This statement is correct. The Washington Consensus was a set of economic policy recommendations developed by economists and policymakers in Washington, D.C. during the 1980s. These recommendations included market-oriented policies and reforms. The IMF and the World Bank were often associated with promoting these policies in developing countries.
7. Who is the highest external debtor in the world?
- Japan
- USA
- UK
- Pakistan
Show Answer
Answer: USA
USA is the highest external debtor in the world: This statement is accurate. The United States is indeed one of the world’s largest external debtors. This is largely due to its substantial trade deficits and the issuance of U.S. government securities to finance the national debt.
8. What was the name of the world currency that John Maynard Keynes conceptualized in the years 1940-42 and proposed at the Bretton Woods Conference?
- Whuffie
- Bancor
- Wocu
- Terra
Show Answer
Answer: Bancor
The world currency that John Maynard Keynes conceptualized and proposed at the Bretton Woods Conference was called “Bancor”: This statement is correct. John Maynard Keynes, the renowned economist, proposed the creation of a supranational currency called “Bancor” at the Bretton Woods Conference. Although the idea was not adopted, it contributed to discussions about international monetary systems.
9. What is the primary objective of the Pradhan Mantri Gram Sadak Yojana (PMGSY) in India?
- Promotion of digital literacy in rural areas
- Enhancement of rural employment through NREGA
- Providing all-weather road connectivity to unconnected rural habitations
- Promotion of agricultural practices in remote villages
Show Answer
Answer: Providing all-weather road connectivity to unconnected rural habitations
Primary objective of the Pradhan Mantri Gram Sadak Yojana is providing all-weather road connectivity to unconnected rural habitations: This statement is accurate. The Pradhan Mantri Gram Sadak Yojana (PMGSY) is a rural development program in India with the primary objective of providing all-weather road connectivity to unconnected rural habitations. It plays a vital role in improving rural infrastructure and accessibility.
10. Global Competitiveness Report is published by ______?
- World Bank
- International Monetary Fund
- World Economic Forum
- World Trade Organization
Show Answer
Answer: World Economic Forum
The Global Competitiveness Report is published by the World Economic Forum annually: This statement is correct. The Global Competitiveness Report is indeed published annually by the World Economic Forum. It assesses and ranks countries’ competitiveness based on factors like infrastructure, economic stability, innovation, and business environment.
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