question_answer

Consider the following statements:

1. The International Development Association (IDA) is an international financial institution which offers concessional loans and grants to the world's poorest developing countries.

2. India is the largest borrower of IDA, which helps poorest countries. Which of the statements given above is/are correct?

A)  Only 1 

B)  Only 2

C)  Both 1 and 2    

D)  neither 1 nor 2

Correct Answer: C

Solution :

[c] The IDA is a member of the World Bank Group and is headquartered in Washington, D.C., United States. It was established in 1960 to complement the existing International Bank for Reconstruction and Development by lending to developing countries which suffer from the lowest gross national income, from troubled creditworthiness, or from the lowest per capita income. Together, the International Development Association and International Bank for Reconstruction and Development are collectively generally known as the World Bank, as they follow the same executive leadership and operate with the same staff. India has become the largest borrower from the International Development Association (IDA), the soft loan affiliate of the World Bank, which helps the world's poorest countries, with a total borrowing of 2,578 million. India is also now the third largest borrower of the International Bank for Reconstruction and Development (the World Bank), with a total portfolio of 21.9 billion (Rs. 98, 590 crore).