International Bank for Reconstruction and Development (IBRD) and its associate institutions are known as the World Bank Group. This set of 10 questions contains all the relevant questions for the competitive exams to be held in India. For the convenience of the aspirants we have given the answers and explanation of the questions. So solve this quiz and evaluate your preparation for the coming exam.
1. Why World Bank was established?
(a) To promote the International Trade
(b) To reconstruct the economies damaged during the Second World War
(c) To improve the adverse Balance of Payment situation of the non member countries
(d) None of the above
Explanation: The prime motive behind the establishment of the World Bank was to provide long run capital to member countries for economic reconstruction and development of the ruined economies.
2. Which of the following statement is correct?
(a) Every member country of the IMF automatically becomes the member of the World Bank
(b) The World Bank has 45 founder members
(c) India is not the founding member of the World Bank
(d) IMF is the part of World Bank group
Explanation: Every member country of the IMF automatically becomes the member of the World Bank. In the same way any member country which quits the IMF is automatically expelled from the membership of the World Bank.
3. Which of the following is not matched correctly?
(a) IBRD (estd.): 1945
(b) IFC (estd.): 1948
(c) IDA (estd.): 1960
(d) MIGA (estd.): 1988
Explanation: International Finance Corporation (IFC) was established in July 1956, while rests of the organization are matched correctly.
4. Currently how many members are in the IBRD?
Explanation: To become a member of the Bank, under the IBRD Articles of Agreement, a country must first join the International Monetary Fund (IMF). Currently there are 189 members are in the IBRD. Each institution of the World Bank Group has different numbers of members.
5. Which of the following statements is not correct?
(a) Both the IMF & IBRD have headquarters in Washington
(b) ICSID is the constituent organization of the World Bank Group
(c) IBRD is known as World Bank also
(d) India's vote share in the International Monetary Fund is 10%
Explanation: India's share in the International Monetary Fund's vote share is 2.64% of total votes while as on April 2018, India’s quota in the IMF is 2.76%.
6. Who is the current President of the World Bank Group?
(a) Robert Zoellick
(b) Roberto Azevêdo
(c) Christine Lagarde
(d) Jim Yong Kim
Explanation: The current President of the World Bank Group is Mr. Jim Yong Kim. Kim is a South Korean-American physician and anthropologist serving as the 12th and current President of the World Bank since 2012.
7. Which of the following statements are correct?
1. World Bank was established 72 years ago.
2. Headquarter of World Bank is in Washington D.C.
3. Adam Smith is the founding father of the World Bank
(c) 1, 2
Explanation: The World Bank was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF).John Maynard Keynes and Harry Dexter White are considered as the" founding fathers" of the World Bank.
8. Who of the following never appointed as the President of the World Bank Group?
(a) Paul Krugman
(b) Robert Zoellick
(c) George Woods
(d) Eugene Meyer
Explanation: Paul Robin Krugman is an American economist; who is currently Professor of Economics at the Graduate Center of the City University of New York. He has never been appointed as the President of the World Bank Group.
9. Which of the following is not the function of the World Bank?
(a) To provide long term loan to the member countries
(b) To provide loan to private investors belonging to member countries on its own guarantee
(c) To ensure exchange rate stability
(d) To provides loan mainly for productive activities
Explanation: The World Bank is playing the main role in providing loans for the development works to the member countries. It provides long term loans for 5 to 25 years. Assurance of exchange rate stability is the function of IMF.
10. Which of the following institutions is not part of the World Bank community?
Explanation: WTO or World Trade Organisation is not part of the World Bank community. World Bank group is comprised of the five institutions i.e. International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID).