Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD):

Question

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 only (Correct answer)
4. D. I, II and III

Correct Answer

Option C — I and III only

Detailed Solution & Explanation

The correct answer is I and III only.

Key Points

• IBRD (World Bank's lending arm) provides loans, guarantees, and advisory services to middle-income and creditworthy low-income countries — Statement I correct.
• IBRD does not work single-handedly; it works alongside IDA, IFC, MIGA, and ICSID under the World Bank Group — Statement II incorrect.
• IBRD was established at Bretton Woods in 1944 primarily to help reconstruct Europe after WWII — Statement III correct.