UPSC Prelims 2016 Question:

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 an observer in IMFC’s meetings.
   
   

Which of the statements given above is/are correct?

Explanation: 

• The International Monetary Fund (IMF) Board of Governors is advised by two ministerial committees, the International Monetary and Financial Committee (IMFC) and the Development Committee. The Committee discusses matters of common concern affecting the global economy. It also advises the IMF on the direction of its work. So, statement 1 is correct.
  
  
• The IMFC has 24 members who are central bank governors, ministers, or others of comparable rank. A number of international institutions, including the World Bank, participate as observers in the IMFC’s meetings. So, statement 2 is correct.
  
  

Therefore, option (3) is the correct answer.

Subject: Economics | Economic Organisations and Conventions