Trade and Economic Organisations

Attempt the quiz above first, then review every question with its correct answer and a short explanation below.

1. Q1.Special Drawing Rights (SDRs) are an international reserve asset created by which institution?

   • A.World Bank
   • B.WTO
   • C.IMF✓ Correct Answer
   • D.UNCTAD

   Explanation: The IMF created the SDR in 1969 to supplement the official reserves of its member countries.

2. Q2.The World Trade Organization (WTO), established in 1995, replaced which earlier arrangement?

   • A.GATT✓ Correct Answer
   • B.UNCTAD
   • C.UNIDO
   • D.OECD

   Explanation: The WTO came into being on 1 January 1995 after the Uruguay Round and replaced the General Agreement on Tariffs and Trade (GATT).

3. Q3.Which of the following is NOT a part of the World Bank Group?

   • A.IBRD
   • B.IDA
   • C.MIGA
   • D.IMF✓ Correct Answer

   Explanation: The World Bank Group includes IBRD, IDA, IFC, MIGA and ICSID. The IMF is a separate institution, although both came out of the Bretton Woods conference.

4. Q4.Which of these countries is NOT a founding member of BRICS?

   • A.Russia
   • B.South Africa
   • C.China
   • D.Japan✓ Correct Answer

   Explanation: BRICS began with Brazil, Russia, India and China, and South Africa joined in 2010. Japan has never been a member, although the group has expanded since 2024.

5. Q5.The Asian Development Bank (ADB) has its headquarters in which city?

   • A.Bangkok
   • B.Singapore
   • C.Manila✓ Correct Answer
   • D.Hong Kong

   Explanation: The ADB was established in 1966 and is headquartered in Manila, Philippines.

6. Q6.The Asian Infrastructure Investment Bank (AIIB) has its headquarters in which city?

   • A.Singapore
   • B.Beijing✓ Correct Answer
   • C.New Delhi
   • D.Manila

   Explanation: The AIIB began operations in 2016 and is headquartered in Beijing, China.

7. Q7.The New Development Bank (NDB), set up in 2015, was created by which grouping?

   • A.ASEAN
   • B.SAARC
   • C.European Union
   • D.BRICS✓ Correct Answer

   Explanation: The New Development Bank was established by the BRICS countries and is headquartered in Shanghai.

8. Q8.The African Development Bank (AfDB) is headquartered in which country?

   • A.Ivory Coast✓ Correct Answer
   • B.Kenya
   • C.South Africa
   • D.Nigeria

   Explanation: The AfDB is headquartered in Abidjan, Ivory Coast.

9. Q9.The Organisation for Economic Co-operation and Development (OECD) has its headquarters in which city?

   • A.Brussels
   • B.Geneva
   • C.Vienna
   • D.Paris✓ Correct Answer

   Explanation: The OECD, a grouping largely of advanced market economies, is headquartered in Paris, France.

10. Q10.The European Bank for Reconstruction and Development (EBRD) was established in which year?

    • A.1989
    • B.1993
    • C.1991✓ Correct Answer
    • D.1995

    Explanation: The EBRD was founded in 1991 to support the transition of Central and Eastern European economies after the Cold War.

11. Q11.Which international organisation deals with the rules of trade between nations and settles trade disputes?

    • A.UNCTAD
    • B.WTO✓ Correct Answer
    • C.ITC
    • D.IMF

    Explanation: The WTO administers trade agreements and operates a dispute settlement system.

12. Q12.The Inter-American Development Bank (IDB) mainly serves which region?

    • A.Asia
    • B.Latin America and the Caribbean✓ Correct Answer
    • C.Africa
    • D.Europe

    Explanation: The IDB was established in 1959 to support economic development in Latin America and the Caribbean.

13. Q13.The Multilateral Investment Guarantee Agency (MIGA) is part of which organisation?

    • A.IMF
    • B.WTO
    • C.World Bank Group✓ Correct Answer
    • D.ADB

    Explanation: MIGA, established in 1988, insures investors against political risk and is one of the five institutions of the World Bank Group.

14. Q14.The International Finance Corporation (IFC), which funds private-sector projects in developing countries, belongs to which group?

    • A.UN Secretariat
    • B.World Bank Group✓ Correct Answer
    • C.IMF
    • D.OECD

    Explanation: The IFC is the arm of the World Bank Group that focuses on the private sector in developing countries.

15. Q15.The International Development Association (IDA) provides concessional loans and grants to which countries?

    • A.All developing countries
    • B.The poorest countries✓ Correct Answer
    • C.Only BRICS members
    • D.Middle-income countries

    Explanation: IDA is the World Bank arm that helps the poorest countries with interest-free credits and grants.

16. Q16.The UN Conference on Trade and Development (UNCTAD) was established in which year?

    • A.1964✓ Correct Answer
    • B.1960
    • C.1970
    • D.1975

    Explanation: UNCTAD was established in 1964 as a permanent organ of the UN General Assembly and is headquartered in Geneva.

17. Q17.The annual meeting of the World Economic Forum is held in which Swiss town?

    • A.Davos✓ Correct Answer
    • B.Zurich
    • C.Geneva
    • D.Lucerne

    Explanation: The World Economic Forum holds its annual meeting in Davos-Klosters, Switzerland; the Forum itself is headquartered in Cologny near Geneva.

18. Q18.The World Development Report is published every year by which institution?

    • A.World Bank✓ Correct Answer
    • B.IMF
    • C.UNDP
    • D.WTO

    Explanation: The World Bank publishes the World Development Report. The Human Development Report is published by UNDP.

19. Q19.GATT, the predecessor of the WTO, was provisionally applied from which year?

    • A.1945
    • B.1947
    • C.1950
    • D.1948✓ Correct Answer

    Explanation: GATT was signed in October 1947 and applied provisionally from 1 January 1948. It remained in force until the WTO replaced it in 1995.

20. Q20.The headquarters of the International Monetary Fund (IMF) is located in which city?

    • A.New York
    • B.Geneva
    • C.Washington, D.C.✓ Correct Answer
    • D.London

    Explanation: The IMF and the World Bank are both headquartered in Washington, D.C.