Political Science · International Relations
Which is/are correct about the World Bank and the IMF?
- 1. The primary role of the World Bank is financing projects for long-term economic development and poverty reduction
- 2. The primary role of the IMF is to ensure a stable exchange-rate regime and provide emergency assistance to countries facing balance-of-payments crises
- 3. The World Bank was not involved in the Structural Adjustment Programme
- 4. The World Bank Group consists of four organisations
A1, 3 and 4
B1, 2 and 3
C1 and 2 ✓ Correct
D2, 3 and 4
Correct answer: (C) 1 and 2 — Items 1 and 2 are correct, so the answer is 1 and 2.
Explanation
★Items 1 and 2 are correct, so the answer is 1 and 2.
★The World Bank finances long-term development and poverty reduction.
★The IMF maintains exchange-rate stability and aids balance-of-payments crises.
★Item 3 is wrong, because the World Bank was involved in the Structural Adjustment Programme.
★Item 4 is wrong, because the World Bank Group consists of five organisations.
★These five are the IBRD, IDA, IFC, MIGA and ICSID.
★So only the basic roles of the two institutions are correctly stated.
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