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?
Answer & explanation
Answer: (c) Both 1 and 2
The IMFC is the ministerial-level committee of the IMF's Board of Governors. It meets twice a year, reviews developments in the world monetary and financial system and, though it has no formal decision-making power, gives strategic direction to the Fund's work; the World Bank is among the institutions that attend as observers.
- ✓ 1. The IMF describes the IMFC as advising the Board of Governors on the international monetary and financial system and as a key instrument for giving strategic direction to the work and policies of the Fund.
- ✓ 2. The IMF factsheet states that several international institutions, including the World Bank, participate as observers in IMFC meetings.
Remember · IMFC: 25 members (mirrors the IMF Executive Board), meets at the Spring and Annual Meetings, advisory only, works by consensus; World Bank attends as an observer.
Sources
- IMF Factsheet: A Guide to Committees, Groups, and Clubs (IMFC section) ↗ “Although the IMFC has no formal decision-making powers, in practice, it has become a key instrument for providing strategic direction to the work and policies of the Fund. … A number of international institutions, including the World Bank, participate as observers in the IMFC's meetings.”
Question and answer: UPSC's official GS Paper I (2016, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·