| Consider the following statements regarding the features of the World Bank. |
| 1. The Board of Governors is the supreme body. |
| 2. The voting power of the Governor of a member country is related to the financial contribution of country concerned. |
| 3. It gives short-term loans to its members to correct their temporary balance of payments disequilibriim. |
| Which of the statements] given above is/are correct? |
A) Only 1
B) 1 and 2
C) 2 and 3
D) All of these
Correct Answer: B
Solution :
[b] All powers of the bank are vested in the Boards of Governors, the bank's supreme decision-making body according to the Articles of Agreement. Generally the governors are member countries' ministers of finance or ministers of development and the voting power of the Governor of a member country depends upon the financial contribution of the concerned country. World Bank provides low interest loans, interest free credits and grants to developing countries. These support a wide array of investments in such areas as education, health, public administration, infrastructure, financial and private sector development, agriculture and environmental and natural resource management. The World Bank and the IMF have adopted a weighted system of voting. According to the IBRD Articles of Agreement, membership in the bank is open to all members of the IMF. A country applying for membership in the fund is required to supply data on its economy, which are compared with data from other member countries, whose economies are similar in size.
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