world organisations section 3 MCQ Questions & Answers Detailed Explanation

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: (a)

Secretaries-General serve for five-year terms that can be renewed indefinitely, although none so far has held office for more than two terms. The United Nations Charter provides for the Secretary-General to be appointed by the General Assembly upon the recommendation of the Security Council.

As a result, the selection is subject to the veto of any of the five permanent members of the Security Council. While the appointment and approval process of the Secretary-General is outlined in the UN Charter, specific guidelines have emerged regarding the term limits and selection process.

These include a limit to two five-year terms, regional (continental) rotation of the appointee’s national origin, and the appointee may not be a citizen of any of the Security Council’s five permanent members.

Note: Article 97 of the United Nations Charter determines that the Secretary-General is “appointed by the General Assembly upon the recommendation of the Security Council.”

As the recommendation must come from the Security Council, any of the five permanent members of the Council can veto a nomination.

António Guterres is a Portuguese politician and diplomat who is serving as the ninth Secretary-General of the United Nations. Previously, he was the United Nations High Commissioner for Refugees between 2005 and 2015.

Answer: (c)

Hans Martin Blix (born 28 June 1928) is a Swedish diplomat and politician for the Liberal People’s Party. He was Swedish Minister for Foreign Affairs (1978–1979).

Blix was also the head of the United Nations Monitoring, Verification and Inspection Commission from March 2000 to June 2003, when he was succeeded by Dimitris Perrikos.

In 2002, the commission began searching Iraq for weapons of mass destruction, ultimately finding none. In February 2010, the Government of the United Arab Emirates announced that Blix will be the head of an advisory board for its nuclear power program.

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.