UPSC Prelims 2025 · GS Paper I
Question 67: International Relations and Current Affairs
Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD) :
- IIt provides loans and guarantees to middle income countries.
- IIIt works single-handedly to help developing countries to reduce poverty.
- IIIIt was established to help Europe rebuild after the World War II.
Which of the statements given above are correct?
AnswerThe answer is (c).
The IBRD, founded at Bretton Woods in 1944, was originally set up to finance the reconstruction of Europe after the Second World War, and later turned to development lending. It gives loans, guarantees and advice to middle-income and creditworthy low-income countries, so Statements I and III are correct. It does not work single-handedly: it is one institution of the World Bank Group, along with the International Development Association, IFC and MIGA, and it works with governments and other partners. Statement II is wrong.
- I. The IBRD provides loans and guarantees to middle-income countries.
- II. It works with the IDA, IFC, MIGA and other partners, not alone.
- III. It was established to help rebuild Europe after the Second World War.
How you could have got this
- If you were sure statement II is not correct, (a), (b) and (d) go: each of them includes II.
What you needed to know: It works with the IDA, IFC, MIGA and other partners, not alone.
Only (c) is left. You didn’t need statements 1 or 3.
This follows an unofficial answer: UPSC has not published its key for this year, and if that answer is wrong, so is this path.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Wrong: II is incorrect, because the IBRD works within the World Bank Group and with partners.
- (b) Wrong: II is incorrect.
- (c) Right: it lends to middle-income countries and was set up to help rebuild Europe.
- (d) Wrong: II is incorrect.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2025, General Studies Paper I, Series A. The paper on upsc.gov.in.