With reference to the International Monetary and Financial Committee (IMFC), consider the following statements : 1. IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work. 2. The World Bank participates as observer in IMFC's meetings. Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2 ✓ UPSC's answer
- (d) Neither 1 nor 2
Why the answer is (c)
• The IMFC, a 24-member committee of the IMF Board of Governors meeting twice a year, discusses developments affecting the global economy and advises the IMF on the direction of its work (statement 1).
• Observers at its meetings include the World Bank, WTO, BIS, OECD, FSB and the UN (statement 2).
• India's Finance Minister represents India's constituency.
• Hence both 1 and 2, option (c).
Why the other options are wrong
- (a) 1 only
- Statement 2 is also correct: the World Bank is an observer.
- (b) 2 only
- Statement 1 is also correct: IMFC advises the IMF.
- (d) Neither 1 nor 2
- Both statements are correct.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2016, held on 7 August 2016. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.