Unit 9: International Economic Organizations (World Bank IMF etc) (JAIIB-MODULE A)

1. What is the primary purpose of the International Monetary Fund (IMF)?

• A. Providing long-term loans for development projects
• B. Ensuring global monetary cooperation and financial stability
• C. Regulating international trade agreements
• D. Promoting tourism among member countries

IMF aims to promote international monetary cooperation, exchange rate stability, balanced growth of trade, and financial stability among member countries.

2. Which of the following is a key function of the World Bank?

• A. Managing global currency reserves
• B. Monitoring international stock markets
• C. Providing long-term financial assistance for development projects
• D. Setting global interest rates

The World Bank provides long-term loans and grants to developing countries to finance development projects like infrastructure, education, and health.

3. Which of the following institutions is part of the World Bank Group?

• A. International Monetary Fund (IMF)
• B. United Nations Development Programme (UNDP)
• C. Organization of Economic Cooperation and Development (OECD)
• D. International Finance Corporation (IFC)

IFC, International Bank for Reconstruction and Development (IBRD), and International Development Association (IDA) are part of the World Bank Group.

4. The IMF provides financial assistance primarily through:

• A. Short-term balance of payments support
• B. Long-term infrastructure loans
• C. Grants for education and health projects
• D. Investments in global stock markets

IMF provides temporary financial support to member countries facing balance of payments problems to stabilize their economies.

5. Which of the following is true about voting power in the IMF?

• A. All member countries have equal votes
• B. Voting power is based on the country's population
• C. Voting power is proportional to the country’s quota contribution
• D. Only developed countries have voting rights

IMF voting power depends on the financial contribution (quota) of each member country, giving larger economies more influence.

6. When did India become a member of the World Trade Organization (WTO)?

• A. 1990
• B. 1995
• C. 2000
• D. 1985

India became a founding member of the WTO when it was established on 1 January 1995, replacing GATT.

7. Which of the following is a key principle of the WTO that India follows?

• A. Free movement of labor
• B. Fixed exchange rates among member countries
• C. Mandatory adoption of developed countries’ laws
• D. Most-Favoured-Nation (MFN) principle

The MFN principle ensures that any trade advantage given by a WTO member to one country must be extended to all members, promoting non-discrimination in trade.

8. The WTO provides a platform for India to resolve trade disputes through:

• A. International Court of Justice
• B. United Nations Security Council
• C. Dispute Settlement Body (DSB)
• D. World Bank arbitration panel

The WTO’s Dispute Settlement Body (DSB) allows member countries like India to resolve trade conflicts through a structured legal process.

9. India has used WTO agreements to protect which of the following sectors?

• A. Agriculture and textiles
• B. Automobile manufacturing only
• C. IT services exclusively
• D. Tourism sector only

India has actively used WTO agreements to safeguard sensitive sectors like agriculture, textiles, and handicrafts from unfair competition.

10. The Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement under WTO affects India by:

• A. Mandating uniform tax policies
• B. Setting minimum standards for intellectual property protection
• C. Fixing currency exchange rates
• D. Limiting foreign direct investment

The TRIPS agreement establishes minimum standards for protecting patents, copyrights, trademarks, and other intellectual property rights among WTO members including India.

11. Which of the following is a regional economic cooperation organization that India is a member of?

• A. European Union (EU)
• B. Organization of Petroleum Exporting Countries (OPEC)
• C. South Asian Association for Regional Cooperation (SAARC)
• D. North American Free Trade Agreement (NAFTA)

SAARC is a regional organization comprising South Asian countries, including India, aimed at promoting economic and regional cooperation.

12. What is the primary objective of regional economic cooperation organizations like SAARC and BIMSTEC?

• A. Establishing a common currency
• B. Promoting trade, investment, and economic integration among member countries
• C. Standardizing education systems
• D. Controlling member countries’ monetary policies

The main goal of regional economic cooperation is to enhance trade, investment, infrastructure development, and economic integration among neighboring countries.

13. BIMSTEC stands for:

• A. Bay of India and Middle East Trade Cooperation
• B. Bangladesh-India-Malaysia-Singapore Trade Economic Council
• C. Bay International Monetary and Security Trade Council
• D. Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation

BIMSTEC is a regional organization of countries around the Bay of Bengal, aimed at promoting technical and economic cooperation in multiple sectors.

14. Which of the following areas are typically covered under regional economic cooperation agreements?

• A. Trade facilitation, infrastructure development, energy, and technology collaboration
• B. Setting global interest rates
• C. Military alliances only
• D. Currency union enforcement

Regional economic agreements focus on enhancing trade, connectivity, infrastructure, energy, and technology collaboration among member countries.

15. Which of the following is an example of a South Asian regional trade initiative that India participates in?

• A. ASEAN Free Trade Area (AFTA)
• B. South Asian Free Trade Area (SAFTA)
• C. North American Free Trade Agreement (NAFTA)
• D. Mercosur

SAFTA is a trade agreement among SAARC countries, including India, aimed at reducing tariffs and promoting intra-regional trade.

16. Which of the following is a recent challenge affecting global trade?

• A. Gold standard fluctuations
• B. Fixed exchange rate policies
• C. Trade tensions and protectionism
• D. Lack of international financial institutions

Recent global trade has been impacted by rising protectionism, trade wars, and tariffs imposed by major economies, affecting international commerce.

17. What is the impact of rising global oil prices on the Indian economy?

• A. Decrease in fiscal deficit
• B. Increase in inflation and current account deficit
• C. Increase in foreign exchange reserves automatically
• D. Decrease in domestic interest rates

Rising oil prices increase import bills, leading to higher inflation and widening the current account deficit in oil-importing countries like India.

18. Which international organization recently focuses on sustainable development and climate financing?

• A. Green Climate Fund (GCF)
• B. International Monetary Fund (IMF)
• C. World Trade Organization (WTO)
• D. Organization of Petroleum Exporting Countries (OPEC)

The Green Climate Fund (GCF) supports developing countries in climate mitigation and adaptation projects as part of global sustainable development efforts.

19. The recent supply chain disruptions globally were mainly caused by:

• A. Changes in international tax laws
• B. IMF monetary policies
• C. WTO trade sanctions
• D. COVID-19 pandemic and geopolitical tensions

The COVID-19 pandemic, combined with geopolitical tensions like the Russia-Ukraine war, disrupted global supply chains and logistics networks.

20. Special Drawing Rights (SDRs) are issued by which international organization to provide liquidity to countries?

• A. World Bank
• B. International Monetary Fund (IMF)
• C. World Trade Organization (WTO)
• D. Asian Development Bank (ADB)

SDRs are international reserve assets created by the IMF to supplement member countries’ official reserves and provide liquidity during balance of payments crises.

21. How do rising global interest rates affect the Indian economy?

• A. Encourage more exports
• B. Reduce domestic inflation automatically
• C. Increase borrowing costs and capital outflows
• D. Strengthen rupee without any impact on trade

Rising global interest rates make borrowing more expensive and can lead to capital outflows from emerging markets like India, affecting investment and exchange rates.

22. Which recent international issue has increased the volatility of crude oil prices affecting India?

• A. WTO tariff disputes
• B. Russia-Ukraine conflict
• C. IMF quota revisions
• D. BRICS expansion

The Russia-Ukraine war disrupted global energy supplies, leading to spikes and volatility in crude oil prices, impacting India as a major importer.

23. How is global inflation indirectly affecting India?

• A. By increasing foreign aid
• B. By decreasing domestic consumption automatically
• C. By stabilizing exchange rates
• D. By increasing import costs and contributing to domestic inflation

Global inflation leads to higher prices of imported goods, energy, and commodities, which increases domestic inflation in India.

24. Which global financial issue has prompted India to strengthen its foreign exchange reserves?

• A. Currency volatility and capital outflows
• B. Global oil surplus
• C. Decline in international trade agreements
• D. Reduction in IMF quotas

To protect against currency volatility and sudden capital outflows, India maintains strong foreign exchange reserves for economic stability.

25. How are emerging technologies like cryptocurrency considered a recent international economic issue for India?

• A. They are completely banned in all countries
• B. They pose challenges for regulation, taxation, and financial stability
• C. They automatically increase exports
• D. They replace the Indian rupee for all domestic transactions

Cryptocurrencies create challenges for India in regulating digital assets, preventing money laundering, ensuring investor protection, and maintaining financial stability.

26. India participates in which of the following groups to discuss global economic and financial issues?

• A. OPEC
• B. ASEAN only
• C. G20
• D. NATO

India is a member of the G20, which brings together major economies to discuss global economic growth, financial stability, and international trade.

27. Which of the following is a global issue related to sovereign debt affecting emerging economies like India?

• A. Trade sanctions by WTO
• B. Rising external debt and repayment pressures
• C. IMF quota reductions
• D. Decline in FDI inflows due to domestic policy only

Emerging economies face challenges of rising external debt and repayment obligations, influenced by global interest rates and borrowing costs.

28. India is part of which international initiative for climate financing and sustainable development?

• A. Green Climate Fund (GCF) and Paris Agreement
• B. IMF SDR allocation only
• C. World Bank structural adjustment programs
• D. WTO dispute settlement body

India participates in the Green Climate Fund (GCF) and is committed to the Paris Agreement targets to access climate finance and support sustainable development.

29. The BRICS group includes which of the following countries along with India?

• A. Japan, South Korea, China, Russia
• B. USA, UK, Germany, France
• C. Australia, Canada, Brazil, South Africa
• D. Brazil, Russia, China, South Africa

BRICS is an association of five major emerging economies: Brazil, Russia, India, China, and South Africa, collaborating on economic and development issues.

30. Which regional forum focuses on Asia-Pacific economic cooperation where India engages in trade discussions?

• A. SAARC
• B. APEC (Asia-Pacific Economic Cooperation)
• C. OPEC
• D. NAFTA

APEC is a forum for 21 Pacific Rim countries to promote free trade and economic cooperation; India engages with APEC economies in trade dialogues and agreements.