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:

Key details of Bretton Woods Institutions (1944): - World Bank (IBRD): Created in 1944; focuses on long-term development loans for developing nations. - IMF (International Monetary Fund): Created in 1944; focuses on international financial system stability and short-term balance-of-payments support.

Answer 1

The Correct Option is D

Concept: The World Bank is an international financial institution that provides loans, grants, and technical assistance to low- and middle-income nations for development projects.

Step 1: Evaluating Statement I.
Statement I states: *"The World Bank was created after the Second World War in the year 1945."*
According to official historical origin and standard NCERT text, the World Bank (originally established as the International Bank for Reconstruction and Development - IBRD) was created at the United Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire, USA, in July 1944 (before World War II officially ended in 1945). Although its Articles of Agreement formally entered into force in late December 1945, its institutional creation year is recorded as 1944 . Thus, Statement I is technically false.

Step 2: Evaluating Statement II.
Statement II states: *"The activities of the World Bank are focused on the developing countries."*
While its initial focus in the late 1940s was rebuilding war-torn Western European infrastructure, its core operational mandate shifted overwhelmingly toward developing and underdeveloped countries . The World Bank assists developing nations in areas such as human development (education, health), agriculture and rural development, environmental protection, infrastructure building, and governance reform. Thus, Statement II is correct.

Step 3: Conclusion.
Since Statement I is false and Statement II is true, Option (D) is the correct choice.