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?

Option (c) is correct because the IMFC is the primary advisory body to the IMF Board of Governors on global economic management, and the World Bank officially participates in its meetings as an observer alongside other international organizations. Option (a) is the most tempting wrong choice as candidates often overlook the specific observer status of external institutions, assuming the committee operates in isolation within the IMF. The core concept tested is the governance structure and inter-institutional cooperation of the International Monetary Fund (IMF).