The Global Financial Stability Report is released by which among the following ?
1. International Monetary Fund
2. World Economic Forum
3. World Bank
Select the correct answer from the code given belo

Question

The Global Financial Stability Report is released by which among the following ?
1. International Monetary Fund
2. World Economic Forum
3. World Bank
Select the correct answer from the code given below :
Code :

UnlockIAS · Accepted Answer

Correct — D, Only 1: the International Monetary Fund. Take the letter off the printed page rather than from memory, because this booklet repeatedly puts 'Only 1' at (d) and reserves (a) for a two-item combination — a candidate who reasons correctly and then marks the position they have drilled will lose the mark. The Global Financial Stability Report is one of the IMF's flagship publications, sitting alongside the World Economic Outlook and the Fiscal Monitor. It is issued twice a year, in April and October, timed to the Fund's Spring Meetings and Annual Meetings, and its subject is the stability of the global financial system: it assesses risks building in banks, non-bank financial intermediaries, sovereign debt, asset valuations and capital flows, and recommends the macro-prudential and regulatory responses. The logic of ownership is worth seeing rather than memorising. Financial stability, balance-of-payments crises and the surveillance of member economies are the IMF's founding mandate under the Bretton Woods settlement; long-term development lending and poverty reduction are the World Bank's; and the World Economic Forum is a private, Geneva-based foundation best known for its Davos meeting and for competitiveness and risk indices. Only the first of the three named bodies has financial-system surveillance as its business, so only statement 1 holds, and on this paper the option that reads 'Only 1' is (d).

Why the other options are wrong — (a) Correct on the IMF, wrong to add the World Economic Forum — and this is the most costly option on the page for a second reason. It occupies the slot where 'Only 1' normally sits on a UPSC paper, so it catches candidates who identified the IMF correctly and then answered by position. On the merits, the WEF is not a financial-stability supervisor at all; it is a private foundation whose annual outputs are the Global Risks Report, the Global Competitiveness Report and the Travel and Tourism indices. Its Davos-linked publications describe risks to business and to the global economy in broad terms; they do not carry out the surveillance of banking systems, sovereign balance sheets and capital flows that the GFSR is built on.  (b) Names the two bodies that do not publish this report and omits the one that does. The World Bank's flagship publications are the World Development Report and Global Economic Prospects, and its work is development lending and poverty reduction rather than financial-market surveillance. The IMF and the World Bank were both created at the Bretton Woods conference and sit across the street from one another in Washington, which is why their publications get swapped so freely — but their mandates were deliberately separated at birth, and 'stability' belongs to the Fund.  (c) Attributes the report to the World Bank alone. This is the single commonest error on the whole publisher-report topic, because the phrase 'financial stability' sounds institutional and the World Bank is the more familiar name to a general reader. Keep the two apart by what they lend for: the Fund lends to countries in balance-of-payments difficulty and watches the plumbing of global finance, so it writes the Global Financial Stability Report, the World Economic Outlook and the Fiscal Monitor; the Bank lends for projects and reform over the long run, so it writes the World Development Report and Global Economic Prospects.

Concept: Almost every year both UPPSC and UPSC ask which body publishes which flagship report, and the reliable way to answer is by mandate rather than by rote. The IMF, created at Bretton Woods in 1944, exists to keep the international monetary system working — exchange-rate and balance-of-payments surveillance, emergency lending, and monitoring of financial-system risk — and its three flagship publications map onto that: the World Economic Outlook for growth and macro forecasts, the Fiscal Monitor for public finances, and the Global Financial Stability Report for risks in banks, markets and capital flows. The World Bank Group, its Bretton Woods twin, is a development lender, and its reports are developmental. The World Economic Forum is neither: it is a private foundation, not an inter-governmental institution, and its indices rank countries rather than supervise them.

State PCS 2025 Q148 — Current Affairs PYQ with Answer

State PCS 2025 Q148 — Current Affairs PYQ with Answer