Which statement best distinguishes the International Monetary Fund from the World Bank?

The Fund lends to governments and the Bank lends to companiesCorrect answerYour answerThe Fund is a United Nations organ and the Bank is notCorrect answerYour answerThe Fund addresses balance-of-payments and monetary stability; the Bank finances development projectsCorrect answerYour answerThe Fund lends only to developed economiesCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

The Fund's business is monetary: exchange stability, and support for countries in balance-of-payments difficulty.
The Bank's business is development: long-term finance for projects and reform programmes.
Both lend to governments, and both are specialised agencies rather than principal organs, so the difference is one of purpose rather than of legal status.

Worth noting

A short version worth carrying: the Fund is about a country's ability to pay its way from month to month; the Bank is about what it builds over decades.

Concept: What the IMF does against what the World Bank does
Typical timeTypical: 50 s
Your timeYours: —

The rule this testsBretton Woods and world trade

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Ten questions from World GK & International Bodies, at your own pace.

Which statement best distinguishes the International Monetary Fund from the World Bank?

Explanation