Final answer:
The statement is false. The primary objective of the World Bank was to help rebuild economies after World War II and to promote economic development in developing countries. The IMF, not the World Bank, was created to deal with issues such as unstable currencies and inadequate monetary reserves.
Step-by-step explanation:
True or False: The World Bank was formed with the primary objective of overcoming inadequate monetary reserves and dealing with unstable currencies which were particularly vexing problems in global trade.
The statement is False. The primary objective of the World Bank, which was formed during the Bretton Woods Conference in 1944, was initially to help rebuild the economies of countries devastated by war, notably those affected by World War II, and to promote the economic development of developing countries. This focus was later broadened to include areas such as power, irrigation, and transportation, and eventually to offer loans and aid to developing countries to help build their economies and address various challenges such as natural disasters, educational needs, and poverty reduction.
In contrast, the International Monetary Fund (IMF) was created to deal with unstable currencies and inadequate monetary reserves, among other issues related to global financial stability. The initial role of the IMF was to ensure exchange rate stability, facilitate international trade, and provide financial assistance to countries with balance of payments problems. While the World Bank and IMF are sister organizations that were both outcomes of the Bretton Woods Agreement, they were established with distinct primary objectives, though over time, their functions and approaches to international economic challenges have evolved.