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UPSC Prelims 2025 GS Paper 1, question 67

Topic: International relations and organisations

Q67

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?

  1. (a) I and II only
  2. (b) II and III only
  3. (c) I and III onlyCorrect answer
  4. (d) I, II and III

Solution.

Answer: (c) I and III only

  1. Statement I is correct: the International Bank for Reconstruction and Development (IBRD) provides loans, guarantees, and advisory services to middle-income and creditworthy low-income countries.
  2. Statement II is incorrect: the IBRD does not work single-handedly; it operates alongside the International Development Association (IDA) and three other institutions as part of the World Bank Group in partnership with other multilateral agencies.
  3. Statement III is correct: founded at the 1944 Bretton Woods Conference, the IBRD was initially established to finance the post-World War II reconstruction of European nations.