Question

Q1. Consider the following statements:

1. European Bank for Reconstruction and Development (EBRD) is an international financial institution.

2. EBRD is a multilateral developmental investment bank.

3. EBRD uses investment as a tool to build market economies.

Which of the above statements are correct?

• A. a) 1 and 2 only
• B. b) 2 and 3 only
• C. c) 1 and 3 only
• D. d) All of the above

Answer 1

The correct option is D

d) All of the above

European Bank for Reconstruction & Development

• The European Bank for Reconstruction and Development (EBRD) is an international financial institution founded in 1991.
• The EBRD was founded to support countries of the former Eastern Bloc in the process of establishing their private sectors.
• As a multilateral developmental investment bank, the EBRD uses investment as a tool to build market economies.
• Initially focused on the countries of the former Eastern Bloc it expanded to support development in more than 30 countries from central Europe to central Asia.
• Besides Europe, member countries of the EBRD are from five continents (North America, Africa, Asia and Australia, see below), with the biggest shareholder being the United States
• The mandate of the EBRD stipulates that it must only work in countries that are committed to democratic principles. Respect for the environment is part of the strong corporate governance attached to all EBRD investments.
• It does not finance defence-related activities, the tobacco industry, selected alcoholic products, substances banned by international law and stand-alone gambling facilities