MCQ
upsc-p1-economy-intl-economic-institutions MCQ - Practice Questions with Answers
Solve 10 upsc-p1-economy-intl-economic-institutions questions for RAS/RPSC preparation.
Practice questions
Q1With reference to the International Monetary Fund, consider the following statements: 1. A member's quota affects its subscription, voting power, access to IMF financing and allocation of Special Drawing Rights. 2. An Article IV consultation is an IMF surveillance process concerning macroeconomic and external-sector policies. 3. A Special Drawing Right is a currency issued by the IMF for circulation among the public. Select the correct answer using the code given below.
Statements 1 and 2 are correct. Quota is both a subscription and governance measure and influences financing access and SDR allocation. Article IV consultation belongs to IMF surveillance. Statement 3 is incorrect: an SDR is an international reserve asset and a potential claim on freely usable currencies, not money circulating among the public.
Q2Consider the following statements regarding IMF financing: Statement 1: IMF lending is intended to assist members facing actual or potential balance-of-payments problems. Statement 2: An IMF arrangement is ordinarily a project loan tied to the construction of a particular road, port or school. Select the correct answer using the code given below.
Statement 1 is correct and Statement 2 is incorrect. IMF financing provides macroeconomic breathing space for members with actual or potential balance-of-payments needs. Financing a specified road, port or school is ordinarily the domain of multilateral development-bank project lending.
Q3Match List I with List II: List I (Institution) A. IMF B. International Development Association C. Multilateral Investment Guarantee Agency D. WTO List II (Principal role) 1. Concessional finance and grants for the poorest countries 2. Administration of trade agreements and dispute settlement 3. Political-risk insurance and credit enhancement 4. Surveillance and balance-of-payments support Select the correct answer using the code given below.
The IMF conducts surveillance and provides balance-of-payments support; IDA gives concessional finance and grants to the poorest countries; MIGA provides political-risk insurance and credit enhancement; and the WTO administers trade agreements and dispute settlement. Thus the matching is A-4, B-1, C-3, D-2.
Q4Arrange the following stages of a typical World Bank project cycle in the correct chronological order: 1. Board approval 2. Project preparation 3. Completion evaluation 4. Project identification Select the correct answer using the code given below.
A typical project moves from identification to preparation and appraisal, then to negotiation and Board approval, followed by implementation and completion evaluation. Among the listed stages, the correct order is 4-2-1-3.
Q5Consider the following statements about international economic institutions and Indian law: 1. International economic institutions such as the IMF and the World Bank are constitutional bodies in India. 2. Article 253 empowers Parliament to make laws for implementing treaties, agreements and decisions of international bodies. 3. An international agreement signed by India does not by itself replace the domestic legal rules governing expenditure, borrowing, taxation, procurement and financial accountability. Select the correct answer using the code given below.
Statements 2 and 3 are correct. Article 253 provides a constitutional route for implementing international obligations through parliamentary law, while domestic expenditure, borrowing, taxation, procurement and financial accountability continue to follow Indian law. Statement 1 is incorrect because these are treaty-based international institutions, not constitutional bodies of India.
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6Consider the following statements about externally aided projects in India: Statement 1: A State may implement a project financed by the World Bank or the Asian Development Bank even though the Union government is normally the formal borrower or guarantor. Statement 2: Implementation of such a project by a State is equivalent to the State independently raising a sovereign external loan outside the Union framework. Select the correct answer using the code given below.
7Consider the following statements: 1. The Asian Development Bank has both regional and non-regional members. 2. The World Trade Organization administers trade agreements and provides a forum for negotiations and dispute settlement. 3. Both the Asian Development Bank and the World Trade Organization conduct IMF-style Article IV surveillance. Select the correct answer using the code given below.
8Consider the following statements about the World Bank Group: 1. In strict institutional usage, the World Bank comprises the IBRD and the IDA. 2. A country must be an IMF member before it can become an IBRD member. 3. Membership of the IDA, IFC and MIGA is independent of IBRD membership. Select the correct answer using the code given below.
9Arrange the following developments in chronological order, from earliest to latest: 1. The World Trade Organization began functioning 2. The IMF and IBRD were designed at the Bretton Woods Conference 3. The Asian Development Bank began operations 4. The IMF Articles and IBRD Articles came into force Select the correct answer using the code given below.
10Match List I with List II: List I (Provision or law) A. Article 253 B. Article 292 C. Article 293 D. Asian Development Bank Act, 1966 List II (Closest relevance) 1. State borrowing and Union consent in specified cases 2. Domestic implementation of India's participation in the Asian Development Bank 3. Parliamentary law for implementing treaties and decisions of international bodies 4. Union borrowing on the security of the Consolidated Fund of India Select the correct answer using the code given below.