Multiple Choice Questions and Answers (MCQs) on International Economic Organizations For Civil Services
Question 1 : Special drawing rights (SDRs) relate to
a) World Bank
b) Reserve Bank of India
c) World Trade Organization
d) International Monetary Funde
Answer : d
Question 2 : The main function of the IMF is to
a) Arrange international deposits from banks
b) Help resolve balance of payments problems of member countries
c) Act as a private-sector lending arm of the World Bank
d) Finance investment to developing countries
Answer : b
Question 3 : Which one among the following agencies is known as “soft credit window” of the World Bank?
a) International Finance Corporation
b) International Bank for Reconstruction and Development
c) International Development Association
d) Multilateral Investment Guarantee Agency
Answer : c
Question 4 : Consider the following statements:
Most international agencies that fund development programs in India on intergovernmental bilateral agreeements mainly provide
- Technical assistance
- Soft loans, which are required to be paid back with interest
- Grants not required to be paid back
- Food assistance to alleviate poverty
Select the correct answer using the codes given below:
a) 2 and 4 are correct
b) 1, 2, and 3 are correct
c) 1, 2, and 4 are correct
d) 3 and 4 are correct
Answer : c
Question 5: Which of the following agencies constitute the World Bank?
- International Bank for Reconstruction and Development
- International Finance Corporation
- International Development Association
- International Monetary Fund
Select the correct answer using the codes given below:
a) 1 and 2
b) 1 and 3
c) 1, 2, and 3
d) 1, 2, 3, and 4
Answer : b
Question 6 : Which of the following statements about International Monetary Fund (IMF) are correct?
- The IMF is a United Nation specialized agency
- The IMF was founded at the Bretton Woods Conference in 1944 to secure international monetary cooperation.
- The objective of the IMF is to stabilize currency exchange rates and to expand international liquidity (access to hard currencies)
Select the correct answer using the codes given below:
a) 1, 2, and 3
b) 2 and 3 only
c) 1 and 2 only
d) 1 and 3 only
Answer : a
Question 7 : With reference to special drawing rights (SDRs) , consider the following statements:
- The SDR is an international reserve currency, created by the IMF to supplement foreign exchange reserves of its member countries.
- A member country can not hold SDRs above the allocations made in proportion to its quota in the IMF.
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 and 2
Answer : a
Question 8 : Consider the following statements regarding the features of the IMF:
- The Board of Governors is the supreme body.
- The voting power of the governor of a member country is related to the financial contribution of the country concerned.
- It gives short-term loan to its members to correct their temporary balance of payments disequilibrium.
Which of the statements given above is/are correct?
a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d)1, 2, and 3
Answer : d
Question 9 : Consider the following statements regarding the recent reforms undertaken by the IMF:
- Renminbi has been added as a reserve currency to SDR.
- India’s voting rights have been increased to 2.6%
- The combined quotas or the capital countries contribute would exceed $600 billion.
- The head of IMF would be appointed from various regions alternatively.
Which of the statements given above are correct?
a) 1 and 2 only
b) 1, 2, and 3 only
c) 2, 3 and 4 only
d) 1, 2, 3, and 4
Answer : b
Question 10 : Consider the following statements about the AIIB:
- The newly appointed president of AIIB is an Indian.
- More than 50 countries are founder members of the AIIB.
- India is its second largest share holder with a stake of 8.52% and voting share of 7.5%
- China has veto power over decisions of the AIIB.
Which of the statements given above is/are correct?
a) 1 and 2 only
b) 2 and 3 only
c) 2, 3 and 4 only
d) 1, 2, 3, and 4
Answer : c