With reference to the International Monetary and Financial Committee (IMFC), consider the following statements:

1. IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work.
2. The World Bank participates as observer in MFC’s meetings,

Which of the statements given above is/are correct?

[UPSC Civil Services Exam – 2016 Prelims]

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither I nor 2

Answer: (c)        

Explanation:

• The IMFC advises and reports to the IMF Board of Governors on the supervision and management of the international monetary and financial system, including on responses to unfolding events that may disrupt the system. Hence statement 1 is correct.
• The IMFC usually meets twice a year.
• A number of international institutions, including the World Bank, participate as observers in the IMFC’s meetings. Hence statement 2 is correct.