Question

Given below are two statements:
Statement I: The World Bank was created after the Second World War in the year 1945.
Statement II: The activities of the World Bank are focused on the developing countries.
In the light of above statements, choose the correct answer from the options given below:

• A. Both Statement I and Statement II are true.
• B. Both Statement I and Statement II are false.
• C. Statement I is true, but Statement II is false.
• D. Statement I is false, but Statement II is true.

Hint:

Remember the “Bretton Woods Twins”---the World Bank (IBRD) and the International Monetary Fund (IMF)---were both planned in 1944 to restore the post-WWII global economy, with the World Bank formally starting operations in 1945 focusing on development.

Answer 1

The Correct Option is A

Step 1: Origin and Establishment of the World Bank:
The World Bank was conceived during the United Nations Monetary and Financial Conference (commonly known as the Bretton Woods Conference) in July 1944. Its formal, legal establishment occurred in December 1945 following the ratification of the Bretton Woods agreements. Since it commenced its primary operations immediately after the Second World War with a mandate to assist in post-war reconstruction, Statement I is historically and pedagogically accepted as true in standard curricula.

Step 2: Role and Focus of the World Bank:
While the bank originally focused on rebuilding war-torn Europe, its focus shifted dynamically toward economic development in developing countries starting in the late 1940s and 1950s. Today, it operates primarily as an international financial institution providing loans, grants, and technical assistance specifically to middle-income and low-income developing nations to alleviate poverty and promote sustainable human development (e.g., health, education, infrastructure). Thus, Statement II is true.

Step 3: Verification of the Options:
Since both Statement I and Statement II are individually correct and factually accurate, option (A) is the only correct answer. Options (B), (C), and (D) are incorrect as they falsely claim one or both statements to be false.