Question

Which of the following issues was the Bretton Woods conference associated with?
A) Post-war economic system of US
B) Establishment of World Bank
C) Establishment of IMF
D) Both (B) and (C)

Answer 1

Hint: The Bretton Woods Conference, also known as the United Nations Monetary and Financial Conference, was a gathering of representatives from 44 countries who gathered in Bretton Woods, New Hampshire, from July 1 to 22, 1944, to agree on a set of new rules for the post-World War II international monetary system.

Complete answer:
The World Bank is an international financial agency that lends and gives money to governments in low- and middle-income nations to fund capital projects.
The International Monetary Fund (IMF) is a 190-country institution dedicated to global monetary cooperation, financial stability, international trade facilitation, high employment and long-term economic growth, and poverty reduction.

Let us look at the given options:
A) Post war economic system of the US: This option is incorrect because the Bretton Woods Conference did not deal with the post-war economic system of the US. It aimed at setting new rules for the international monetary system.
B) Establishment of World Bank: Bretton Woods Conference was associated with the establishment of the International Bank for Reconstruction and Development which was known as the World Bank. But it also established the IMF, hence this option is incorrect.
C) Establishment of IMF: Bretton Woods Conference was associated with the establishment of the International Monetary Fund (IMF) but it also established the World Bank, hence this option is incorrect.
D) Both (B) and (C): In July 1944, an international conference assembled in Bretton Woods, New Hampshire, United States, established the International Monetary Fund and the World Bank. The conference's purpose was to create a framework for economic cooperation and development that would result in a more stable and prosperous global economy. While this purpose is still at the heart of both organisations' activity, it is continually changing in response to new economic trends and concerns.

Thus, the correct answer is Option D) Both (B) and (C).

Note: The World Bank Group assists developing nations in reducing poverty and increasing shared prosperity, while the International Monetary Fund helps to stabilise the international monetary system and monitors global currencies.