With reference to the International Monetary and Financial Committee (IMFC), consider the following statements :
- 1.IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work.
- 2.The World Bank participates as observer in IMFC's meetings.
Which of the statements given above is/are correct?
Show answer
Answer: C. Statement 1 is correct: the IMFC advises the IMF Board of Governors on the global economy and the direction of the Fund's work. Statement 2 is correct: the World Bank is among institutions that take part in IMFC meetings as observers. So both 1 and 2.
Watch for: Students think a sister body like the World Bank would be a member or be excluded, not an observer.
Why the other options are wrong
- A. Wrong because the World Bank does attend IMFC meetings as an observer.
- B. Wrong because advising the IMF is the IMFC's main role.
- D. Wrong because both statements are correct.
Source to check: IMF factsheet 'A Guide to Committees, Groups, and Clubs' (imf.org)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.