UPSC Indian Economy – Chapter 22: International Economic Institutions (33 MCQs)
UPSC Indian Economy – Chapter 22: International Economic Institutions (33 MCQs) – 33 questions, subject: Indian Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.
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The Bretton Woods conference that created the IMF and the IBRD was held in:
Correct Answer: A [1944]
Explanation:
July 1944.
Voting power in the IMF is mainly determined by a member's:
Correct Answer: A [quota]
Explanation:
Each member's quota sets its voting power in the IMF, together with a small equal number of basic votes.
The 16th General Review of IMF Quotas approved in December 2023 provides for:
Correct Answer: C [a 50 per cent increase without changing quota shares]
Explanation:
The 16th Review, approved in December 2023, raises quotas by 50 per cent in equal proportion, leaving members' quota shares unchanged.
The Rapid Credit Facility of the IMF is meant for:
Correct Answer: D [low-income members with urgent BoP needs]
Explanation:
The Rapid Credit Facility gives quick concessional financing to low-income members facing urgent balance-of-payments needs.
India last borrowed from the IMF during:
Correct Answer: B [the 1991 balance-of-payments crisis]
Explanation:
repaid by 2000.
The currency with the largest weight in the SDR basket (2022 review) after the US dollar is the:
Correct Answer: A [euro]
Explanation:
29.31%.
Consider the following statements about SDRs:
1. The SDR is a currency issued by the IMF.
2. The SDR basket has five currencies.
3. The general SDR allocation of 2021 was about US$ 650 billion.
Which of the statements given above are correct?
Correct Answer: C [2 and 3 only]
Explanation:
The SDR basket has five currencies and the August 2021 allocation was about SDR 456 billion (US$ 650 billion); the SDR is not a currency.
If one SDR equals US$ 1.37, a holding of SDR 13.5 billion is worth about:
Correct Answer: D [US$ 18.5 billion]
Explanation:
13.5 × 1.37.
Which member of the World Bank Group provides political-risk insurance to investors?
Correct Answer: B [MIGA]
Explanation:
MIGA, set up in 1988, provides political-risk insurance and credit enhancement to cross-border investors.
India is NOT a member of the:
Correct Answer: B [ICSID]
Explanation:
India has not joined ICSID, the World Bank Group's investment-dispute arbitration centre, though it belongs to the other four.
Assertion (A): The World Bank no longer publishes the Doing Business report.
Reason (R): The report was discontinued in 2021 and replaced by Business Ready (B-READY).
Correct Answer: A [Both A and R are true, and R is the correct explanation of A]
Explanation:
Both are true, and the 2021 discontinuation of Doing Business, later replaced by B-READY, is why it is no longer published.
Which of the following countries is a member of the New Development Bank, though not one of its BRICS founders?
Correct Answer: C [Bangladesh]
Explanation:
Bangladesh joined the NDB as a new member, along with the UAE and Egypt.
Which IMF lending instrument provides concessional medium-term support to low-income member countries?
Correct Answer: C [Extended Credit Facility]
Explanation:
the Extended Credit Facility gives concessional medium-term support to low-income members (Table 22.1).
Which of the following statements about the G20 are correct?
1. The African Union became a member at the New Delhi summit in 2023.
2. Malaysia is a member of the G20.
3. The European Union is a member of the G20.
Select the correct answer:
Correct Answer: D [1 and 3 only]
Explanation:
The African Union joined the G20 at the New Delhi summit in 2023 and the European Union is a member; Malaysia is not.
Arrange the following in chronological order:
1. Creation of the SDR
2. WTO comes into being
3. Renminbi enters the SDR basket
4. African Union joins the G20
Select the correct answer:
Correct Answer: C [1-2-3-4]
Explanation:
1969, 1995, 2016, 2023.
The 18th BRICS summit (September 2026) was held in:
Correct Answer: D [New Delhi]
Explanation:
India, as BRICS chair for 2026, hosted the 18th summit at Bharat Mandapam, New Delhi, on 12–13 September 2026.
The 'World Investment Report' is published by:
Correct Answer: D [UNCTAD]
Explanation:
UNCTAD, the UN Conference on Trade and Development, publishes the annual World Investment Report on global FDI trends.
The G20 Independent Expert Group on strengthening multilateral development banks (2023) was co-chaired by N. K. Singh and:
Correct Answer: B [Lawrence Summers]
Explanation:
The G20 Independent Expert Group on MDBs, set up under India's 2023 presidency, was co-chaired by N. K. Singh and Lawrence Summers.
In its October 2026 World Economic Outlook, the IMF projected world growth for 2026 at:
Correct Answer: A [3.1 per cent]
Explanation:
The October 2026 World Economic Outlook projected world growth of 3.1 per cent in 2026 and 3.4 per cent in 2027.
Loans from multilateral banks for State projects, such as metro-rail projects, are obtained:
Correct Answer: A [through the Union Government, which takes them and passes them on to the State]
Explanation:
the Union takes the loan and passes it on.
Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD):
1. It provides loans and guarantees to middle-income countries.
2. It works single-handedly to help developing countries to reduce poverty.
3. It was established to help Europe rebuild after World War II.
Which of the statements given above are correct?
Correct Answer: C [1 and 3 only]
Explanation:
The IBRD lends to middle-income countries and was founded to rebuild post-war Europe, but works alongside other World Bank Group institutions.
Consider the following statements:
I. India has joined the Minerals Security Partnership (MSP) as a member.
II. India is a resource-rich country in all the 30 critical minerals that MSP has identified.
III. The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957, empowering the Central Government to exclusively auction mining leases and composite licenses for certain critical minerals.
Which of the statements given above are correct?
Correct Answer: C [I and III only]
Explanation:
India joined the MSP in 2023 and the 2023 MMDR amendment let the Centre auction certain critical minerals; India lacks many critical minerals.
Consider the following statements:
Statement-I: Recently, Venezuela has achieved a rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries.
Statement-II: Venezuela has the world's largest oil reserves.
Which one of the following is correct in respect of the above statements?
Correct Answer: D [Statement-I is incorrect, but Statement-II is correct]
Explanation:
Venezuela holds the world's largest proven oil reserves, yet its crisis has continued and millions have emigrated.
"Rapid Financing Instrument" and "Rapid Credit Facility" are related to the provisions of lending by which one of the following?
Correct Answer: B [International Monetary Fund]
Explanation:
The Rapid Financing Instrument and the Rapid Credit Facility are IMF emergency lending facilities for urgent balance-of-payments needs.
With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements:
1. AIIB has more than 80 member nations.
2. India is the largest shareholder in AIIB.
3. AIIB does not have any members from outside Asia. Which of the statements given above is/are correct?
Correct Answer: A [1 only]
Explanation:
The AIIB had more than 80 members by 2019; China, not India, is the largest shareholder, and it has non-Asian members.
In which one of the following groups are all the four countries members of G20?
Correct Answer: A [Argentina, Mexico, South Africa and Turkey]
Explanation:
Argentina, Mexico, South Africa and Turkey are all G20 members; each other option includes at least one non-member.
"Gold Tranche" (Reserve Tranche) refers to
Correct Answer: D [a credit system granted by IMF to its members]
Explanation:
The reserve (gold) tranche is the part of a member's IMF quota that it can draw without conditions – an IMF credit facility.
The term 'Digital Single Market Strategy' seen in the news refers to
Correct Answer: C [EU]
Explanation:
The Digital Single Market Strategy, launched in 2015, is a European Union policy to remove barriers to online trade among members.
Consider the following statements: 1. New Development Bank has been set up by APEC.
2. The headquarters of New Development Bank is in Shanghai. Which of the statements given above is/are correct?
Correct Answer: B [2 only]
Explanation:
The New Development Bank was set up by BRICS, not APEC, and its headquarters is in Shanghai.
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 an observer in IMFC's meetings.
Which of the statements given above is/are correct?
Correct Answer: C [Both 1 and 2]
Explanation:
The IMFC advises the IMF Board of Governors on the global economy and the Fund's work, and the World Bank attends as an observer.
'Global Financial Stability Report' is prepared by the
Correct Answer: B [International Monetary Fund]
Explanation:
The IMF publishes the Global Financial Stability Report twice a year on risks to the global financial system.
Recently, which one of the following currencies has been proposed to be added to the basket of IMF's SDR?
Correct Answer: D [Renminbi]
Explanation:
The Chinese renminbi was proposed in 2015 and joined the SDR basket on 1 October 2016.
Which of the following organizations brings out the publication known as 'World Economic Outlook'?
Correct Answer: A [The International Monetary Fund]
Explanation:
The IMF publishes the World Economic Outlook twice a year, in April and October.
➤ Full notes, maps, tables, a reason for every option and Mains PYQs – U15 · Indian Economy (UPSC book, ₹249): www.shanmugamiasacademy.in/study-materials/upsc-indian-economy
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