Question

Q 2 Describe the role of the World Bank in the international community. How does the World Bank contribute to the overall stability of the global exchange market?

Answer 1

World Bank is an international financial institution. It will dispense loans to various countries for the sake of capital projects. It is a component of World Bank Group. World Bank consists of International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). Its goal is to eradicate poverty. It's biggest recipients are India and China. It was created along with International Monetary Fund (IMF) at the Bretton Woods Conference in 1944. Both organisations are based in Washington.D.C.

Role of World Bank in international community as well as global exchange market are as follows :

It provides loans, grants and other other financial products via IBRD and IDA. IBRD assists in financial development in both middle-income and low-income countries. It also provides risk management services, advisory services etc. for capital projects. It provides assistance to growing countries and offer long-term loans. They provide innovative infrastructure in the development of countries, tax reductions, free trade, socially sustainable development as well as more transparent services.World Bank assists in open and predictable international trading system. Ultimately, World bank benefits the global exchange market with its two organizations IBRD and IDA.