Q.What are the functions of the Security Council?

The International Monetary Fund (IMF) was created in 1944 at the Bretton Woods Conference to promote global monetary cooperation, secure financial stability, facilitate international trade, and reduce poverty. It acts as a lender of last resort for countries facing balance-of-payments crises, and it monitors the economic policies of its member nations. Statement I is therefore accurate: the IMF does oversee financial institutions and regulations at the international level, though its primary focus is on exchange rates, monetary policy, and financial stability rather than all international financial regulations.

Statement II, however, is incorrect. The IMF does not operate on a one-member-one-vote principle like the United Nations General Assembly. Instead, voting power is determined by a quota system based on each member country's relative size in the world economy. The largest economies — the United States, Japan, Germany, France, the United Kingdom, and China — hold the most votes. For instance, the United States alone has over 16% of the total voting power, enough to block major decisions that require an 85% supermajority. Smaller developing countries have far less say, which has been a long-standing criticism of the institution.

The United Nations Security Council (UNSC) is the most powerful organ of the United Nations, charged with maintaining international peace and security. Its structure reflects the post-World War II balance of power, with five permanent members — often called the P5 — who hold veto power over any substantive resolution. These five are China, France, Russia, the United Kingdom, and the United States.

Japan, despite being a major economic power and a significant contributor to the UN budget, is not a permanent member. It has been a non-permanent member many times, serving two-year elected terms, but it does not have a permanent seat or veto power. The question tests your knowledge of this basic fact about the UNSC's composition. …

The United Nations Organisation is a vast system, and it is easy to confuse the many international bodies that work alongside it. To answer this question correctly, you need to understand the difference between a specialised agency of the UN and an independent international organisation that simply cooperates with the UN.

The UN Charter created a family of specialised agencies — autonomous organisations that work with the UN through the Economic and Social Council (ECOSOC). These agencies have their own membership, budgets, and governing bodies, but they are formally brought into the UN system by a special agreement. The World Health Organisation (WHO) and the United Nations Educational, Scientific and Cultural Organisation (UNESCO) are classic examples of such specialised agencies. They report to the UN, coordinate their work with it, and are considered integral parts of the UN system.

The United Nations High Commissioner for Refugees (UNHCR) is a different case. It is not a specialised agency but a programme or subsidiary organ of the UN General Assembly. It was created by the Assembly itself to carry out a specific mandate — protecting refugees. So while it is not an "agency" in the technical sense of the word used in the UN Charter, it is undeniably a part of the UNO's own structure. It is an arm of the UN, not a separate treaty-based organisation.

Now consider the World Trade Organisation (WTO). The WTO was established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT). It is a completely separate, treaty-based organisation with its own membership, its own dispute settlement system, and its own governing structure. It is not a specialised agency of the UN, nor is it a programme or fund created by the UN. …

The question asks which organisation has the primary mandate to prevent international conflicts. To answer this, we need to understand what each body actually does.

The United Nations was created in 1945 with peace and security at the heart of its mission. Within the UN system, different organs handle different aspects of international cooperation. The Security Council stands apart because it alone carries the responsibility for maintaining international peace and security. This is not just one function among many—it is the core purpose for which the Security Council exists.

When a conflict threatens to break out or escalates between nations, the Security Council can take action. It investigates disputes, recommends methods of settlement, and crucially, can authorise sanctions or even military intervention to restore peace. It has the power to make binding decisions that member states are obligated to follow. This enforcement capacity distinguishes it from advisory or advocacy bodies. …