International organizations and global financial issues - MCQs with answers

International organizations and global financial issues - MCQs with answers


1. Consider the following statements and identify the right ones.

i. IMF came into existence as an outcome on Bretton Woods agreement
ii. France was the 1st country to borrow from IMF

a. I only
b. ii only
c. both
d. none

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ANSWER: c. both

IMF oversees the international monetary system.



2. Consider the following statements and identify the right ones.

i. The executive board is the highest decision making body of IMF
ii. The Board of Governors meets twice a year.

a. I only
b. ii only
c. both
d. none

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ANSWER: d. none

The Board of Governors is the highest decision making body of IMF. The Board of Governors meets once a year.



3. Consider the following statements and identify the right ones.

i. Executive board conducts the business of the IMF
ii. It meets once in a year

a. i only
b. ii only
c. both
d. none

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ANSWER: a. I only

Executive board conducts the business of the IMF. It functions in continuous session and meets several times in a week.



4. Consider the following statements and identify the right ones.

i. The day to day work of IMF is conducted by the board of governors
ii. Selected nations who are members of IMF are given a quota

a. i only
b. ii only
c. both
d. none

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ANSWER: b. ii only

The day to day work of IMF is conducted by the executive board. All the nations are assigned a quota.



5. Consider the following statements and identify the right ones.

i. The quota does not decide voting power in IMF’s decisions
ii. Quota subscription constitutes most of the financial resources of IMF

a. i only
b. ii only
c. both
d. none

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ANSWER: b. ii only

The quota decides voting power in IMF’s decisions. Quota subscription constitutes most of the financial resources of IMF.



6. Consider the following statements and identify the right ones.

i. SDRs cannot voluntarily be exchanged among members for currencies
ii. US is the largest member of the IMF

a. I only
b. ii only
c. both
d. none

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ANSWER: b. ii only

SDRs can voluntarily be exchanged among members for currencies.



7. Which of the following is an institution of World Bank?

a. IBRD
b. IDA
c. IFC
d. All the above

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ANSWER: d. All the above

World Bank has five institutions- IBRD, IDA, International Finance Corporation, MIGA and ISCID.



8. Consider the following statements and identify the right ones.

i. Low income countries are eligible to receive low interest loans from IDA
ii. India is eligible for a blend of financial assistance from IDA and IBRD

a. I only
b. ii only
c. both
d. none

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ANSWER: c. both

IBRD aims at reducing poverty in middle income and credit-worthy poor countries.



9. Which of the following is not an objective of World Bank?

a. To provide guarantee on private loans
b. To develop production facilities in underdeveloped countries
c. To rehabilitate war ruined economies
d. None of the above

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ANSWER: d. None of the above

World Bank provides long term capital to member countries for economic reconstruction and development.



10. Which of the following is known as soft loan window of the World Bank?

a. IDA
b. IFC
c. IBRD
d. MIGA

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ANSWER: a. IDA

IDA was established in 1960. It aims at reducing poverty by providing interest free credits and grants for economic growth.



11. The investment arm of the world bank is

a. IDA
b. IFC
c. IBRD
d. MIGA

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ANSWER: b. IFC

IFC was established in 1956. It is known as the investment arm of the World Bank.



12. The insurance arm of world bank is

a. IDA
b. IFC
c. IBRD
d. MIGA

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ANSWER: d. MIGA

MIGA is known as the insurance arm of World Bank. It was established in 1988.



13. Consider the following statements and identify the right ones.

i. MIGA does not offers political risk insurance for projects to developing member countries
ii. MIGA also helps investors and lenders deal with investment risks

a. i only
b. ii only
c. both
d. none

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ANSWER: b. ii only

MIGA offers political risk insurance for projects to developing member countries.



14. Consider the following statements and identify the right ones.

i. IFC is governed by board of governors
ii. It mobilizes capital in international capital markets

a. i only
b. ii only
c. both
d. none

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ANSWER: c. both

International Finance Corporation is governed by board of governors who are represented by member countries.



15. Consider the following statements and identify the right ones.

i. ICSID is a multilateral treaty formulated by executive directors of IBRD
ii. All the countries have deposited their instruments of ratification, acceptance of the convention.

a. I only
b. ii only
c. both
d. none

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ANSWER: a. I only

Not all the countries have deposited their instruments of ratification, acceptance of the convention.



16. Consider the following statements and identify the right ones.

i. The head of WTO is known as director general
ii. The WTO summit is held once in very year

a. I only
b. ii only
c. both
d. none

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ANSWER: a. I only

The WTO summit is held once in two years. The summit is known as Ministerial Conference.


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    Discussion

  • International organizations and global financial issues - MCQs with answers -premji (08/02/15)
  • question regarding ICSID.answer is not clear about formation of ICSID. I think it is an organisation.

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