The World Bank is one of the most powerful global monetary organizations, affecting the economic and development policies of more than 180 countries. Established in 1944, it aims to decrease poverty and foster sustainable growth by providing financing, technical expertise, and grants. This set of 50 Important Multiple Choice Questions on the World Bank will strengthen your understanding of the meanings of the organization’s structure, objectives, and global relevance for students, exam seekers, and current affairs readers. Each multiple-choice question is written in the latest format with succinct answers and explanations for learning ease. Find below the 50 key MCQs about the World Bank.
Key Fact Sheet about the World Bank
| World Bank — Quick Facts | |
|---|---|
| Founded | Bretton Woods Conference (July 1944); IBRD Articles ratified Dec 27, 1945 |
| Headquarters | Washington, D.C., USA |
| President (as of 2025) | Ajay Banga |
| Members | 189 member countries |
| Main organs | Board of Governors; Board of Executive Directors |
| Main purpose | Reduce poverty and support development through finance & technical assistance |
50 Important MCQs about the World Bank
1. When was the World Bank created at the Bretton Woods Conference?
A. 1942
B. 1944
C. 1946
D. 1950
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Details: The Bretton Woods Conference in July 1944 set up the institutions that became the World Bank and IMF.
2. In which city is the World Bank headquarters located?
A. London
B. Geneva
C. Washington, D.C.
D. New York
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Details: The World Bank’s main offices are in Washington, D.C., United States.
3. Who is the World Bank President (as of 2025)?
A. Kristalina Georgieva
B. Ajay Banga
C. Jim Yong Kim
D. David Malpass
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Details: Ajay Banga became World Bank President in 2023.
4. Approximately how many member countries does the World Bank Group have?
A. 150
B. 172
C. 189
D. 196
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Details: The World Bank Group is owned by 189 member governments.
5. Which two institutions were created alongside each other at Bretton Woods?
A. World Bank and WTO
B. World Bank and IMF
C. IMF and UNDP
D. WTO and IMF
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Details: The Bretton Woods Conference in 1944 established both the World Bank and the IMF.
6. What is the main aim of the World Bank?
A. Regulating global trade tariffs
B. Reducing global poverty and supporting development
C. Managing military aid
D. Running international elections
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Details: The World Bank provides loans, credits, and technical assistance to developing countries.
7. Which two institutions are commonly referred to collectively as “the World Bank”?
A. IBRD and IDA
B. IFC and MIGA
C. IMF and IBRD
D. WHO and IDA
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Details: The IBRD and the IDA are the two institutions normally called the World Bank.
8. What does IBRD stand for?
A. International Bank for Reconstruction and Development
B. International Bureau for Research & Development
C. International Board for Regional Development
D. Institute for Banking, Research & Development
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Details: IBRD provides loans to middle-income and creditworthy low-income countries.
9. What does IDA stand for?
A. International Development Alliance
B. International Development Association
C. Investment & Development Agency
D. Institute for Development Assistance
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Details: IDA gives concessional loans and grants to the poorest countries.
10. Which World Bank arm focuses on private sector investment?
A. IBRD
B. IDA
C. IFC
D. ICSID
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Details: The Multilateral Investment Guarantee Agency (MIGA) provides guarantees against political risks.
12. Which World Bank body is the ultimate policy-making authority?
A. Board of Executive Directors
B. Board of Governors
C. President’s Office
D. Senior Management Team
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Details: The Board of Governors (usually finance ministers) is the highest decision-making body.
13. How often do the Boards of Governors typically meet?
A. Quarterly
B. Annually
C. Every five years
D. Monthly
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Details: Governors meet once a year at the World Bank–IMF Annual Meetings.
14. Which of the following is NOT one of the World Bank Group organizations?
A. IBRD
B. IDA
C. WHO
D. IFC
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Details: WHO is a UN health agency, not part of the World Bank Group.
15. What is the primary funding source for IDA credits and grants?
A. Private donations only
B. Donor country contributions and IBRD transfers
C. World Bank bond sales only
D. Corporate investments
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Details: IDA relies on replenishments by donor countries and transfers from IBRD.
16. What are “World Bank Projects” typically used for?
A. Military procurement
B. Infrastructure, education, health, and poverty reduction programs
C. Space exploration
D. Exclusive corporate bailouts
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Details: Projects finance roads, schools, hospitals, water systems, and similar development needs.
17. Which group within the World Bank focuses on dispute resolution for investment treaties?
A. MIGA
B. ICSID
C. IDA
D. IFC
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Details: The International Centre for Settlement of Investment Disputes (ICSID) handles investor–state disputes.
18. Which metric is a traditional World Bank goal related to poverty?
A. Reducing extreme poverty to below 3% by 2030
B. Eliminating all taxes in poor countries
C. Creating 1 billion jobs by 2025
D. Building a global bank for citizens
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Details: The World Bank’s goals include ending extreme poverty and boosting shared prosperity.
19. Which country is typically the largest shareholder in the World Bank?
A. China
B. United States
C. India
D. Japan
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Details: The U.S. is the largest shareholder and wields significant voting power.
20. What is a common lending instrument used by IBRD?
A. Grants only
B. Market-rate loans (IBRD loans)
C. Equity stakes in companies
D. Military aid packages
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Details: IBRD provides loans at near-market rates to creditworthy countries.
21. Which World Bank report provides global economic analysis and forecasts?
A. Doing Business Report
B. World Development Report
C. Annual Financial Review
D. Global Military Index
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Details: The World Development Report is a flagship analytical publication of the Bank.
22. Which World Bank product measured how easy it is to do business until it was discontinued?
A. Ease Index
B. Doing Business Report
C. Competitiveness Report
D. Investment Climate Survey
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Details: The Doing Business report tracked regulatory environments but was discontinued in 2021.
23. Which part of the World Bank provides advisory services and mobilizes private finance?
A. IDA
B. IFC
C. IBRD
D. ICSID
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Details: The IFC invests in private sector projects and provides advisory services.
24. What is the role of the Board of Executive Directors?
A. Approve projects, policies, and budgets for the Bank
B. Run national elections in borrower countries
C. Manage global trade agreements
D. Print World Bank currency
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Details: The Executive Directors oversee daily operations and approve financing.
25. What is a key condition sometimes attached to World Bank loans?
A. Military cooperation requirements
B. Policy reforms and conditionality to improve project success
C. Free land transfers
D. Absolute secrecy agreements
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Details: Loans often include conditions to ensure sustainable use of funds.
26. Which World Bank window helps fragile and conflict-affected states?
A. IDA’s Fragility Window
B. IFC’s Crisis Fund
C. MIGA’s Stability Guarantee
D. IBRD Emergency Loan Pool
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Details: IDA provides special support mechanisms for fragile states.
27. Which of the following is a common criticism of the World Bank?
A. It imposes onerous policy conditionalities
B. It provides too many grants
C. It exclusively funds wealthy countries
D. It avoids fiscal oversight
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Details: Critics argue some conditions can be politically sensitive or harsh.
28. What is “replenishment” in IDA terms?
A. A loan repayment method
B. Periodic donor funding rounds to finance IDA operations
C. Hiring new staff at IDA
D. Selling World Bank assets
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Details: Donor countries periodically replenish IDA funds to continue concessional lending.
29. Which World Bank publication focuses on country-level data and indicators?
A. World Development Indicators (WDI)
B. Global Finance Monitor
C. Country Trade Digest
D. Development Atlas
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Details: WDI compiles data on development indicators for countries worldwide.
30. How does the World Bank typically raise funds for IBRD lending?
A. Printing money
B. Issuing bonds in international capital markets
C. Charging member visas
D. Corporate sponsorships
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Details: IBRD raises money by borrowing in global capital markets and lending to countries.
31. Which of these is a priority area for World Bank investments?
A. Defense modernization
B. Climate action and green infrastructure
C. Luxury tourism projects
D. International space programs
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Details: The Bank increasingly finances climate resilience, clean energy, and adaptation.
32. Which meeting pairs with the World Bank Annual Meetings?
A. G7 Summit
B. IMF Annual Meetings
C. World Economic Forum
D. UN General Assembly
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Details: The World Bank and IMF hold joint Annual Meetings each year.
33. Which tool helps the World Bank measure project impact and outcomes?
A. Project Appraisal Document (PAD)
B. Military Impact Report
C. Global Audit Tool
D. Trade Performance Index
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Details: PADs and implementation documents guide project design and evaluation.
34. What does the World Bank use to rate country debt sustainability?
A. Debt Sustainability Framework (DSF)
B. Global Bond Index
C. Fiscal Secrecy Index
D. Budget Opacity Score
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Details: DSF tools assess the risks and sustainability of public debt.
35. Which year did the IBRD Articles of Agreement get ratified formally?
A. 1944
B. 1945
C. 1950
D. 1952
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Details: The IBRD Articles were ratified on December 27, 1945.
36. Which World Bank arm handles guarantees and dispute resolution for foreign investors?
A. IFC
B. MIGA
C. IDA
D. IBRD
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Details: MIGA provides political risk insurance and guarantees to investors.
37. What is the role of World Bank country offices?
A. Conduct national elections
B. Coordinate projects, policy dialogue, and technical assistance locally
C. Print local currency
D. Manage private banks
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Details: Country offices work directly with governments and partners on development programs.
38. Which of the following is a financing instrument used by the World Bank for rapid response?
A. Development Policy Financing (DPF)
B. Emergency Recovery Loan or Rapid Response Window
C. Long-term warranty loans only
D. Military assistance line
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Details: The Bank has mechanisms for quick financing in crises and emergencies.
39. Which principle guides the World Bank’s environmental and social safeguards?
A. No safeguards needed
B. Risk assessment and mitigation to protect people and environment
C. Only financial screening matters
D. Unrestricted project support
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Details: Safeguards and environmental-social frameworks help reduce project harm.
40. Which group sets strategy and performance targets for the World Bank Group?
A. Annual Shareholder Meeting only
B. Board of Executive Directors and management with shareholders’ input
C. UN General Assembly
D. WTO Council
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Details: Executive Directors, management, and shareholders shape strategy and targets.
41. Which World Bank publication offers country-level project and financial data?
A. Projects & Operations database (Projects & Ops)
B. World Bank Travel Guide
C. Global Fashion Index
D. Borrower Handbook
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Details: The Projects & Operations database provides searchable project information.
42. Who usually serves as a country’s Governor on the Board of Governors?
A. Minister of Culture
B. Finance Minister or Central Bank Governor
C. Education Secretary
D. Head of State always
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Details: Governors are typically finance ministers or central bank governors.
43. Which instrument does the World Bank use to support private-public partnerships?
A. PPP advisory and financing from IFC and IBRD/IDA
B. Military contracting only
C. Only grants, never loans
D. WTO-backed PPP fund
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Details: The Bank and IFC provide advisory services and financing for PPPs.
44. What kind of lending terms does IDA provide?
A. Market-rate interest only
B. Concessional (low or zero interest) and long maturity terms
C. Short-term high-interest loans
D. Equity stakes only
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Details: IDA lends on highly concessional terms to the poorest countries.
45. Which World Bank tool helps countries plan investments and policy for poverty reduction?
A. Country Partnership Framework (CPF)
B. Global Budget Template
C. Military Aid Plan
D. Trade Promotion Guide
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Details: CPF guides the Bank’s engagement with a country over several years.
46. Which statement about the World Bank’s voting power is true?
A. All countries have equal votes regardless of capital subscriptions
B. Voting power is tied to financial subscriptions and shareholding
C. Only the U.S. votes on all matters
D. Voting power is decided by the UN Secretary-General
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Details: Votes are allocated based on capital subscriptions and shareholding.
47. How does the World Bank support climate finance?
A. By refusing to fund any energy projects
B. Through dedicated climate finance instruments, green bonds, and project financing
C. By investing only in fossil fuels
D. Through military grants
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Details: The Bank mobilizes finance for mitigation, adaptation, and green investments.
48. Which area has the World Bank recently emphasized as part of institutional reform?
A. Decentralizing operations and shifting staff closer to regions served
B. Centralizing all staff in Washington only
C. Ending country offices
D. Stopping all private sector work
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Details: Recent reforms aim to place more staff in regional hubs worldwide.
49. What role does the World Bank play during global health crises?
A. None — it’s a military body
B. Provides rapid financing, technical help, and health system support
C. Only issues travel advisories
D. Runs hospitals worldwide directly
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Details: The Bank finances emergency response and supports health system resilience.
50. What is a core advantage of the World Bank compared with purely private lenders?
A. Ability to mobilize concessional financing and coordinate global development policy
B. It has no governance or accountability
C. It provides grants with no oversight
D. It focuses solely on profit generation
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Details: The Bank blends finance, technical expertise, and policy advice to support development.
The World Bank continues to be a major force in global development, from combating poverty to funding climate change adaptation and education initiatives. It is critical for individuals who study for competitive examinations, such as CSS or UPSC, or take international relations-style examinations to be aware of how the World Bank operates, who leads it, and what policies it adopts. We hope these World Bank MCQs 2025 have otherwise helped you to learn relevant facts and to inform your general knowledge. Continue to check our website for new, updated mixed-choice questions relating to international organizations, economics, and global issues.