UPSC CSE Prelims
Question 34
Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD) :
- It provides loans and guarantees to middle income countries.
- It works single-handedly to help developing countries to reduce poverty.
- It was established to help Europe rebuild after the World War II.
Which of the statements given above are correct?
View correct answer and explanation
Correct answer: C
Correct Option: C (I and III only)
Explanation: The IBRD, a World Bank institution, was set up in 1944 to support post-war reconstruction and later development. It lends to middle-income and creditworthy lower-income states, while tackling poverty jointly with other World Bank Group bodies.
Statement / Pair / Item-wise Analysis:
I: True-provides loans, guarantees and risk-management support.
II: False-poverty reduction also involves IDA, IFC and other partners.
III: True-European reconstruction was its original purpose.
Option-wise Analysis:
A. Incorrect-includes II despite the item-wise findings; omits III which the answer requires.
B. Incorrect-includes II despite the item-wise findings; omits I which the answer requires.
C. Correct-this matches the facts and the item-wise assessment above.
D. Incorrect-includes II despite the item-wise findings.