Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD) :
- I.It provides loans and guarantees to middle income countries.
- II.It works single-handedly to help developing countries to reduce poverty.
- III.It was established to help Europe rebuild after the World War II.
Which of the statements given above are correct?
Show answer
Answer: C. Statement I is correct: IBRD lends to middle-income and creditworthy low-income countries and gives guarantees. Statement II is wrong: IBRD works with IDA, IFC, MIGA and ICSID as the World Bank Group, and with other partners; it does not work single-handedly. Statement III is correct: IBRD was created in 1944 at Bretton Woods to help rebuild Europe after World War II. So I and III.
Watch for: Absolute words like 'single-handedly' usually make a statement wrong.
Why the other options are wrong
- A. Statement II is wrong, because IBRD works within the World Bank Group, not alone.
- B. Statement II is wrong, so II and III is wrong.
- D. Statement II is wrong, so all three cannot be correct.
Source to check: World Bank website, 'IBRD' page
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.