1) India’s voting share in IMF is
a. 2.69%
b. 3.10%
c. 2.10%
d. 1.75%
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Answer
Explanation
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ANSWER: 2.69%
Explanation:
In long-pending reforms that came into effect, emerging and developing economies gained more influence in the governance architecture of the International Monetary Fund (IMF). India’s voting rights increase to 2.6 per cent from the current 2.3 per cent, and China’s, to 6 per cent from 3.8, as per the new division. Russia and Brazil are the other two countries that gain from the reforms.
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2) Which of the following is/are criteria for inclusion of a currency in IMF basket?
1. A country’s exports of goods and services must be among the largest in the world.
2. Currency should be “widely used” and “widely traded”.
a. Only 1
b. Only 2
c. Both
d. None
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Answer
Explanation
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ANSWER: Both
Explanation:
- Currencies usability depends upon reserve holdings, international banking liabilities, international debt securities and foreign-exchange turnover.
- Chinese yuan was added in IMF basket beside dollar, euro, pound and yen.
- Yuan is widely exchanged in Asia, it accounts for a "small but growing share" of trading in Europe and only "thin" volumes in North America.
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3) Which of the following currencies is / are part of SDR basket?
1. Ruble
2. Dollar
3. Euro
4. Yuan
5. Yen
6. Pound
a. 1 and 3
b. Only 2
c. 2,3,5,6
d. All of the above
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Answer
Explanation
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ANSWER: 2,3,5,6
Explanation:
Special drawing rights or SDR basket consists of dollar, euro, yen and pound.
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4) Which of the following are functions of IMF?
1. solve balance of payment problems
2. aid long-term economic development
3. reduce poverty in developing countries.
4. surveillance of the global economy
5. lending and loans under their policy of conditionality
a. 1,2,3,5
b. 2,3,4,5
c. 1,2,4,5
d. 1,4,5
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Answer
Explanation
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ANSWER: 1,4,5
Explanation:
The primary difference between the International Monetary Fund, or IMF, and the World Bank lies in their respective purposes and functions. The IMF exists primarily to stabilize exchange rates, while the World Bank's goal is to reduce poverty.
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