1) Which of the following statements is/are correct about New Development Bank?
1. K.V. Kamath, is the newly appointed chief of the New Development Bank
2. Yekaterinburg summit in 2014 resulted in the official inauguration of the New Development Bank.
a. Only 1
b. Only 2
c. Both
d. None
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Answer
Explanation
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ANSWER: Only 1
Explanation:
- The Fortaleza summit in 2014 resulted in the official inauguration of the New Development Bank
- The inaugural BRICS summit took place in Yekaterinburg, Russia in 2009.
- NDB is headquartered in Shanghai, Beijing
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2) Which of the following statements is/are correct about Contingent Reserve Arrangement (CRA) of NDB?
1. Other countries beside BRICS can become member of Contingent Reserve Arrangement (CRA) of NDB.
2. All BRICS countries will share equally to CRA.
a. Only 1
b. Only 2
c. Both
d. None
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Answer
Explanation
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ANSWER: Only 1
Explanation:
- CRA fund will consist of $10 billion of "paid-in capital" ($2 billion from each member to be provided over seven years) and an additional $40 billion to be "paid upon request".
- Out of the total initial capital of $100 billion, China will contribute $41 billion, Brazil, Russia and India would give $18 billion each, and South Africa would contribute $5 billion.
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3) Which of the following statements is / are correct?
1. The NDB has subscribed opening capital of $50 billion shared equally among its members.
2. CRA has an opening capacity of $100 billion, which will be based on currency swap among member countries.
a. Only 1
b. Only 2
c. Both
d. None
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Answer
Explanation
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ANSWER: Both
Explanation:
The NDB has an authorized opening capital of U.S.$100 billion, with the founding members sharing the subscribed opening capital of $50 billion equally. The proposed CRA has an opening capacity of $100 billion, which will be based on currency swap among member countries. The CRA is primarily intended as a buffer to overcome short-term liquidity pressure Eurasian Economic Union and meet unexpected risks or balance of payment burdens.
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4) Which of the following factor determines the voting share of NDB?
a. Contribution of the country to the bank's authorized capital
b. Purchasing power parity
c. Size of country's economy
d. Each country will have one vote without veto power
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Answer
Explanation
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ANSWER: Each country will have one vote without veto power
Explanation:
In the New Development Bank each participant country will be assigned one vote, and none of the countries will have veto power.
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