world organisations section 3 MCQ Questions & Answers Detailed Explanation

Answer: (a)

There are 10 non-permanent members in the United Nations Security Council, with five elected each year to serve two-year terms. This basic structure is set out in Chapter V of the UN Charter.

Answer: (a)

Structural adjustments are the policies implemented by the International Monetary Fund (IMF) and the World Bank (the Bretton Woods Institutions) in developing countries.

These policy changes are conditions for getting new loans from the International Monetary Fund (IMF) or World Bank, or for obtaining lower interest rates on existing loans.

Conditionalities are implemented to ensure that the money lent will be spent in accordance with the overall goals of the loan. The Structural Adjustment Programs (SAPs) are created with the goal of reducing the borrowing country’s fiscal imbalances.

Answer: (b)

Countries contribute money to a pool through a quota system from which countries with payment imbalances can borrow funds temporarily.

The IMF’s membership is divided along income lines: certain countries provide the financial resources while others use these resources. Both developed country “creditors” and developing country “borrowers” are members of the IMF.

The developed countries provide the financial resources but rarely enter into IMF loan agreements; they are the creditors.

Answer: (b)

Robert Bruce Zoellick was the eleventh president of the World Bank, a position he held from July 1, 2007, to June 30, 2012. He was previously a managing director of Goldman Sachs, United States Deputy Secretary of State (resigning on July 7, 2006) and the U.S.

Trade Representative, from February 7, 2001, until February 22, 2005. Zoellick has been a senior fellow at his alma mater Harvard Kennedy School since his retirement from the World Bank on July 1, 2012.

President George W. Bush nominated Zoellick on May 30, 2007, to replace Paul Wolfowitz as President of the World Bank. On June 25, 2007, Zoellick was approved by the World Bank’s executive board.

Note: Jim Yong Kim also known as Kim Yong is a South Korean-American physician and anthropologist who have served as the 12th President of the World Bank since July 1, 2012.

Answer: (d)

The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. Its value is based on a basket of four key international currencies, and SDRs can be exchanged for freely usable currencies.

Answer: (a)

The Bretton Woods Institutions are the World Bank, and the International Monetary Fund (IMF). They were set up at a meeting of 43 countries in Bretton Woods, New Hampshire, USA in July 1944. Organisation for Economic Co-operation and Development (OECD) is not a Bretton Woods Institution.