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Q.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.

CBSECBSE Class XII Board 2026MCQ· 1mImportance★★★★★
✓ Free question

The World Bank was established in 1944, not 1945, making the first statement false. However, its primary activities today are indeed focused on developing countries, making the second statement true.

Understanding the role of international financial institutions like the World Bank is crucial in foreign policy analysis, as these bodies significantly influence global economic development and stability. They were largely conceived in the aftermath of major global conflicts to prevent future economic crises and foster cooperation. The World Bank, alongside the International Monetary Fund (IMF), forms the core of what are known as the Bretton Woods institutions, named after the conference where they were established.

Let us examine Statement I: "The World Bank was created after the Second World War in the year 1945."

The Second World War officially ended in 1945. However, the International Bank for Reconstruction and Development (IBRD), commonly known as the World Bank, was established at the United Nations Monetary and Financial Conference in Bretton Woods, New Hampshire, USA, in July 1944. While its creation was certainly during the final stages of the war and in anticipation of the post-war world, the specific year of its establishment was 1944, not 1945. Its initial purpose was to finance the reconstruction of war-torn European economies. Therefore, Statement I is false.

Note

While the Second World War concluded in 1945, the planning for post-war international economic order, including the creation of institutions like the World Bank and IMF, began earlier, during the war itself, to ensure a more stable global economy once peace was restored.

Now, let us consider Statement II: "The activities of the World Bank are focused on the developing countries."

Initially, the World Bank's primary mandate was indeed the reconstruction of Europe. However, as Europe recovered, the Bank's focus gradually shifted. By the 1960s and increasingly in subsequent decades, its mission evolved to address poverty and promote development in what are now known as developing countries. Today, the World Bank Group comprises several institutions, all dedicated to reducing poverty and supporting development in low- and middle-income countries across the globe. Their activities include providing loans, grants, policy advice, and technical assistance for projects in areas such as education, health, infrastructure, agriculture, and environmental protection. Therefore, Statement II is true.

The closest distractor, option (A) "Both Statement I and Statement II are true," is incorrect because, as established, Statement I regarding the year of the World Bank's creation is false.

Important

The World Bank's mission has evolved significantly since its inception. While initially focused on post-war reconstruction, its current core mandate is poverty reduction and sustainable development in developing countries worldwide.

✓Final answer

Statement I is false because the World Bank was established in 1944, not 1945, while Statement II is true as its activities are indeed focused on developing countries. Thus, the correct option is (D) Statement I is false, but Statement II is true.

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