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Q67·GS Paper 1 · Prelims 2016

New Development Bank

IRInternational Financial InstitutionsStatement-basedEasyCurrent-affairs-linked

Question

Consider the following statements:

1New Development Bank has been set up by APEC.
2The headquarters of New Development Bank is in Shanghai.
  1. 1.

    New Development Bank has been set up by APEC.

  2. 2.

    The headquarters of New Development Bank is in Shanghai.

Options

a

1 only

b

2 only

Answer
c

Both 1 and 2

d

Neither 1 nor 2

Explanation

Statement 1 is incorrect—the New Development Bank was set up by BRICS (Brazil, Russia, India, China, South Africa) in 2014, not by APEC (Asia-Pacific Economic Cooperation). This is a significant distinction in international financial institutions. Statement 2 is correct—the headquarters of the New Development Bank is located in Shanghai, China. The bank was formally inaugurated in 2015 with the primary purpose of financing development projects in BRICS countries and other developing nations, serving as an alternative to Western-dominated institutions like the World Bank and IMF. > NDB: Established by BRICS (not APEC), HQ in Shanghai. Answer: (b).

Question details

Year

2016

Paper

GS Paper 1

Question

Q67

Subject

International Relations

Sub-topic

International Financial Institutions

Type

Statement-based

Difficulty

Easy

Nature

Current-affairs-linked

Source hint

BRICS New Development Bank 2015

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