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 correct answer is option C because both statements are correct.

The International Monetary and Finance Committee (IMFC) meets twice a year to discuss matters on common concerns affecting global economy and accordingly advises BoG[1] (Board of Governors of the IMF). This confirms that Statement 1 is correct—IMFC discusses matters of concern affecting the global economy and advises the IMF on its work direction.

Many international institutions including World Bank participate as observers in the meetings of IMFC.[2] This clearly establishes that Statement 2 is also correct—the World Bank does participate as an observer in IMFC meetings.

Since both statements are factually accurate as per the source documents, option C (Both 1 and 2) is the correct answer. The IMFC serves as one of the two Ministerial Committees that advise the IMF's Board of Governors, with the World Bank and other international institutions participating in an observatory capacity.

1. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Board of Governors > p. 513
2. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Board of Governors > p. 513