Practicing Success

Target Exam

CUET

Subject

Political Science

Chapter

Contemporary World Politics: End of Bi-Polarity

Question:

Read the passage and answer the question:

The collapse of communism was followed in most of these countries by a painful process of transition from an authoritarian socialist system to a democratic capitalist system. The model of transition in Russia, Central Asia, and eastern Europe came to be known as ‘shock therapy'. Shock therapy varied in intensity and speed amongst the former second-world countries, but its direction and features were quite similar.

Which of the following organization did not aid the process of transition in Russia,  Central Asia, and Eastern Europe from a socialist economy to a capitalist economy?

Options:

World Bank

International Monetary Fund

Inkombank

None of the above

Correct Answer:

Inkombank

Explanation:

The correct answer is Option 3 -Inkombank

The collapse of communism was followed in most of these countries by a painful process of transition from an authoritarian socialist system to a democratic capitalist system. The model of transition in Russia, Central Asia, and eastern Europe that was aided by the World Bank and International Monetary Fund came to be known as ‘shock therapy'.

Inkombank was Russia’s second largest bank that went bankrupt in 1998. As a result, the money of 10,000 corporate and private shareholders was lost, along with the money kept in the bank by customers.