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?

1. Statement 1 is correct. The International Monetary and Financial Committee (IMFC) is a key advisory body to the IMF Board of Governors. Its mandate includes discussing matters of common concern affecting the global economy and advising the IMF on the supervision and management of the international monetary and financial system, thereby guiding the direction of the Fund's work. 2. Statement 2 is correct. Several international institutions, including the World Bank, are typically invited to participate as observers in the meetings of the IMFC to facilitate policy coordination and information sharing.