Previous Year Question
Match the following:
List-I | List-II |
A. W.T.O. | 1. To provide finance to correct equilibrium in balance of payments |
B. I.M.F. | 2. Generally to forbid the use of quantitative restrictions in trade |
C. SAARC | 3. Sanction of soft loans |
D. I.D.A. | 4. To promote co-operation among South Asian Countries |
Codes:
A-1, B-2, C-3, D-4
A-2, B-3, C-4, D-1
A-2, B-1, C-4, D-3
A-3, B-2, C-4, D-1
Correct Answer: C
Detailed Solution
WTO — Generally forbids the use of quantitative restrictions in trade: The basic principle of Article XI of GATT 1994 is the general elimination of quantitative restrictions. Thus, quotas and other quantitative trade restrictions are generally prohibited, although exceptions are permitted under specified circumstances.
IMF — Provides finance to correct disequilibrium in the balance of payments: The IMF provides financial assistance to its member countries to address Balance of Payments (BoP) problems. Such a problem may arise when a country's external payment requirements exceed its foreign-exchange earnings.
SAARC — Promotes cooperation among South Asian countries: The South Asian Association for Regional Cooperation was established in 1985. Its objective is to promote regional cooperation among South Asian countries in economic, social, cultural, technical and other fields.
IDA — Sanctions soft loans: The International Development Association (IDA) is the part of the World Bank that provides concessional financing to low-income countries. Its credits may carry zero or very low interest and have long repayment periods; therefore, they are commonly referred to as soft loans.