The foremost objective of the International Bank of Reconstruction and Development (IBRD) is to

Analyze the question: The question asks for the main (foremost) objective of the IBRD, better known as the World Bank.

Concept: The IBRD was set up in 1944 at the Bretton Woods Conference. Its original purpose was to help rebuild war-torn European economies (reconstruction) and then to support the economic development of poorer member countries. It does this mainly by providing long-term loans for development projects such as roads, power, water, ports and schools.

Going through the options:

• A. Help promote private and public investments: The IBRD does encourage investment, but this is a supporting function. The International Finance Corporation (IFC) is the arm that focuses on private investment.
• B. Assist members achieve balance of payments stability: This is the job of the IMF (International Monetary Fund), not the IBRD.
• C. Grant long-term loans for infrastructure: This is the core function of the IBRD. It lends for reconstruction and development projects, and infrastructure is the main area it funds.
• D. Maintain stability of foreign exchange: This is also an IMF function, since the IMF oversees exchange rate stability.

Answer: Options B and D belong to the IMF, so they can be eliminated. Between A and C, the IBRD's foremost role is providing long-term development finance, and that matches C.

Exam tip: Remember it this way:

• IBRD = "Build": long-term loans for development and infrastructure.
• IMF = "Money": balance of payments and exchange rate stability, with short-term support.

When you see "balance of payments" or "exchange rate stability" in an option, think IMF.