With reference to the International Monetary and Financial Committee (IMFC), consider the following statements:

1. IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work.
2. The World Bank participates as observer in IMFC’s meetings.

Which of the statements given above is/are correct?

The International Monetary and Financial Committee (IMFC) is a committee within the IMF that discusses issues impacting the global economy and provides guidance to the IMF on its work.

The World Bank participates in the IMFC meetings as an observer.

Statement 1 is correct: The IMFC advises the IMF Board of Governors on the supervision and management of the international monetary and financial system, including responses to events that may disrupt the system.

Statement 2 is correct: Several international institutions, including the World Bank, participate as observers in the IMFC's meetings.

Hence, both statements are correct.

Sources:

• IMF - Factsheet on International Monetary and Financial Committee