Consider the following statements : 1. New Development Bank has been set up by APEC. 2. The headquarters of New Development Bank is in Shanghai. Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only ✓ UPSC's answer
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Why the answer is (b)
• The New Development Bank was established by the BRICS countries (Brazil, Russia, India, China, South Africa) under the Fortaleza Declaration of 2014, with USD 50 billion initial capital — not by APEC, so statement 1 is wrong.
• Statement 2 is correct: its headquarters is in Shanghai, China; K.V. Kamath of India was its first president.
• Hence 2 only, option (b).
Why the other options are wrong
- (a) 1 only
- Statement 1 is wrong: NDB was set up by BRICS, not APEC.
- (c) Both 1 and 2
- Statement 1 is wrong.
- (d) Neither 1 nor 2
- Statement 2 is correct: NDB is in Shanghai.
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.