WBCS.LIVE practice question

Consider the following pairs of prominent International Organizations and their primary institutional functions: 1. IMF - Provides long-term project loans strictly for physical infrastructure development. 2. IDA - Offers interest-free loans and grants solely to the poorest developing countries. 3. WTO - Exclusively regulates the legal rules of international trade between member nations. Which of the pairs given above are correctly matched?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. 2 and 3 only
  2. 1 and 2 only
  3. 1 and 3 only
  4. 1, 2, and 3

Correct answer and explanation

Correct answer: 2 and 3 only

Explanation: āœ… Correct Answer: A) 2 and 3 only šŸ“š Explanation: The International Monetary Fund (IMF) primarily focuses on broad macroeconomic stability and provides short-to-medium-term loans specifically to resolve immediate balance of payments crises, not long-term physical infrastructure funding. The International Development Association (IDA), widely known as the soft loan window of the World Bank, accurately provides interest-free credits and grants to the world's poorest nations. The World Trade Organization (WTO) correctly functions as the sole global intergovernmental body dealing with the legal rules of international trade.