IMF and World Bank Quiz | Globalization101

The World Bank and IMF were originally created to:

Help alleviate poverty in third-world, developing countries
Rebuild ruined European economies after the World War II.
Lend money to poor people around the world
Finance projects associated with the newly-created United Nations

Voting rights in the IMF are determined through which method?

Weighted by size of the economy
Weighted by the country's annual contribution to the IMF
Weighted by size of the population
One country-one vote principle

Which one of these four goals is NOT part of the mission of the IMF?

To promote international monetary cooperation
To stabilize exchange rates between countries
To provide loans to the private sector to build hotels or power plants
To provide a safeguard to members of the IMF against balance of payments crises

The IMF and World Bank make loans pegged to the gold reserves of the member country.

True
False

Voting rights in the World Bank are determined by?

Weighted by size of the economy
Weighted by the country's annual contribution to the World Bank
Weighted by size of the population
One country-one vote principle

Which of the following organizations in the World Bank family lends money to private companies?

International Bank for Reconstruction and Development
International Development Association
International Finance Corporation
International Center for Settlement of Investment Disputes

The aim of the International Bank for Reconstruction and Development is to

Reduce poverty of the least-developed countries (LDCs) by promoting sustainable development, through loans, guarantees, and non-lending-including analytical and advisory-services
Reduce poverty of the middle income-developed countries (LDCs) by promoting sustainable development, through loans, guarantees, and non-lending-including analytical and advisory-services
Provide financial assistance to the poorest developing countries by promoting sustainable development, through zero-interest loans that have longer payment periods of 35 to 40 years and a grace period of 10 years
Provide financial assistance to the middle income developing countries by promoting sustainable development, through zero-interest loans that have longer payment periods of 35 to 40 years and a grace period of 10 years

What is the difference between an investment loan and an adjustment loan?

Investment loans are funded through the raising money on the international bond market, while adjustment loans are funded through government donations.
Adjustment loans are funded through the raising money on the international bond market, while investment loans are funded through government donations.
Adjustment loans are granted for projects that will produce goods or services, or public works to help economic and social development, while investment loans are granted for programs to support reforms to government policies.
Investment loans are granted for projects that will produce goods or services or public works to help economic and social development, while adjustment loans are granted for programs to support reforms to government policies

International Development Association loans

Aim to reduce poverty of the least-developed countries (LDCs) by promoting sustainable development, through loans, guarantees, and non-lending-including analytical and advisory-services
Aim to reduce poverty of the middle income-developed countries (LDCs) by promoting sustainable development, through loans, guarantees, and non-lending-including analytical and advisory-services
Provide financial assistance to the poorest developing countries by promoting sustainable development, through zero-interest loans that have longer payment periods of 35 to 40 years and a grace period of 10 years
Provide financial assistance to the middle- income developing countries by promoting sustainable development, through zero-interest loans that have longer payment periods of 35 to 40 years and a grace period of 10 years

International Development Association

Works to improve governance by assisting in public management and in combating corruption
Fosters recovery efforts in post-conflict countries
Concentrates on social issues such as gender equality and public health.
All of the above

Multilateral Investment Guarantee Agency provides political risk insurance, which insulates investors against government expropriations?

True
False

Participation in the International Center for Settlement of Investment Disputes (ICSID) is

Voluntary and non-binding
Voluntary and binding
Required, but not binding
Required and binding

World Bank and IMF debt relief

was started to help countries who accumulated too much debt because of low interest rates and strong commodity prices
was enacted through the Debt Relief for Heavily Indebted Poor Countries (HIPC) Initiative, which provides funds to countries who fulfill certain economic reforms
was enacted through the Debt Relief for Heavily Indebted Poor Countries (HIPC) Initiative, which provides funds to countries without any pre-conditions
has brought 100 percent cancellations of debt owed by 40 least developed countries

What is the main difference between the World Bank and IMF?

The IMF is headquartered in New York City, while the World Bank is headquartered in Washington, DC.
The IMF is mainly funded by the United States, while the World Bank is mainly funded by the United Nations
The World Bank gives loans for all types of project, such as building dams or combating aids; while the IMF mainly focuses on loans dealing with a country's financial and monetary problems.
There is no difference. They do the same things.