Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD):
- I.It provides loans and guarantees to middle income countries.
- II.It works single-handedly to help developing countries to reduce poverty.
- III.It was established to help Europe rebuild after the World War II.
Which of the statements given above are correct?
Answer & explanation
Answer: (c) I and III only
I and III are correct. The IBRD lends and gives guarantees to middle-income and creditworthy low-income countries, and it was created in 1944 to help Europe rebuild after the Second World War. II is wrong because the IBRD does not work alone: it joins with the IDA to form the World Bank and works with the wider World Bank Group and with public and private partners.
- ✓ I The World Bank describes the IBRD as providing loans, guarantees, risk management products and advisory services to middle-income and creditworthy low-income countries.
- ✗ II The IBRD joins with the IDA to form the World Bank, and it works closely with all institutions of the World Bank Group and with public and private sectors, so it does not work single-handedly.
- ✓ III Created in 1944 to help Europe rebuild after the Second World War; NCERT says it was set up to finance post-war reconstruction.
Remember · IBRD (1944, Bretton Woods): lends to middle-income and creditworthy low-income countries; with IDA forms the World Bank; set up to finance post-war reconstruction.
📘 Read it in NCERT: Class 10 India and the Contemporary World – II, Ch 3 (practise this chapter)
Sources
- NCERT Class 10 · India and the Contemporary World – II, Chapter 3 “The International Bank for Reconstruction and Development (popularly known as the World Bank) was set up to finance post- war reconstruction.”
- World Bank: International Bank for Reconstruction and Development (IBRD) ↗ “providing loans, guarantees, risk management products, and advisory services to middle-income and creditworthy low-income countries, as well as by coordinating responses to regional and global challenges … Created in 1944 to help Europe rebuild after World War II, IBRD joins with IDA, our fund for the poorest countries, to form the World Bank.”
Question and answer: UPSC's official GS Paper I (2025, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·