UPSC Prelims 1999 · General Studies
Question 79: Economy and Social Development
Match List I with List II and select the correct answer using the codes given below the Lists: List I I. WTO II. IDA III. IMF IV. IBRD List II A) Provides loans to address short-term balance of payment problems B) Multi-lateral trade negotiation body C) Sanction of soft loans D) Facilitating lending and borrowings for reconstruction and development
AnswerThe answer is (b).
The WTO is the multilateral body for trade negotiations and rules. The International Development Association (IDA), part of the World Bank group, gives soft loans (interest-free or very cheap) to the poorest countries. The IMF lends to meet short-term balance of payments problems. The IBRD (World Bank) lends for reconstruction and development. Remember: IMF means short-term balance of payments; IBRD means long-term development.
- I. WTO - multilateral trade negotiation body (B).
- II. IDA - sanction of soft loans (C).
- III. IMF - loans for short-term balance of payment problems (A).
- IV. IBRD - lending for reconstruction and development (D).
Why each option is right or wrong
- (a) Wrong. Swaps the roles of the IMF and the IBRD.
- (b) Right. WTO-B, IDA-C, IMF-A, IBRD-D.
- (c) Wrong. Gives the WTO soft loans and the IDA the trade-negotiation role.
- (d) Wrong. Swaps the roles of the WTO and the IDA.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 1999, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.