PSAT Reading Question 126: Answer and Explanation

Question: 126

Which statement best explains the difference between the purposes of the IMF and the World Bank?

• A. The IMF provides money to pay for war costs, while the World Bank offers assistance to rebuild countries recovering from war across the globe.
• B. The IMF encourages stability in the global financial system, while the World Bank promotes economic development in relatively poor nations.
• C. The IMF supports the U.S. dollar in international markets, while the World Bank provides low-interest loans to many nations around the world.
• D. The IMF offers governments advice about participation in global markets, while the World Bank encourages monetary cooperation between nations.

Correct Answer: B

Explanation:

B

Difficulty: Medium

Category: Inference

Getting to the Answer: Locate information in the passage that accurately summarizes the purposes of both institutions. Then, ask yourself how these purposes differ. Both institutions encourage economic growth. However, Passage 1 notes that the IMF maintains payments and receipts between nations. The World Bank, on the other hand, focuses on "economic and social progress" (line 36) in individual countries. Choice (B) is the correct answer.