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Prelims-IAS – ECONOMICS MCQ-34

1..In the new formula, which of the following are the factors that determine the quota of a country in IMF?

  1. GDP at market rate.
  2. GDP in PPP terms.
  3. Exchange rate
  4. External debt

Select the correct answer using the code given below.

(a) 1, 2
(b) 1, 3, 4
(c) 2, 3, 4
(d) All


2… Which of the following is correct about World Bank?

  1. To become a member of the Bank, a country must first join the International Monetary Fund (IMF).
  2. Membership in IDA, IFC and MIGA are conditional on membership in IBRD.
  3. Unlike IMF, in IBRD all member states have equal voting rights.
  4. Entire capital can be paid in terms of Special Drawing Rights (SDR) to World Bank.

Select the correct answer using the code given below.
(a) 1, 2
(b) 1, 3
(c) 2, 3, 4
(d) All


3… Which of the following statements are Incorrect?

  1. Special Drawing Rights (SDR) is neither a currency nor a claim on IMF, it is rather a potential claim on the freely usable currencies of IMF members.
  2. The basket composition of the SDR, which includes the Euro, the Japanese Yen, Pound Sterling, US Dollar and the Chinese renminbi, reflects the relative importance of currencies in the world”s trading and financial systems.
  3. The IMF has credit arrangement – GAB – General Arrangements to Borrow and NAB – New Arrangements to Borrow, as the main source of financing apart from the additional funds through quota subscriptions of member countries.

Select the correct answer using the code given below.
(a) 1, 2
(b) 3 only

(c) 1, 3
(d) 1, 2, 3


4.. Which of the following statements are correct?

1. The World Bank Group consists of 4 agencies – IBRD, IDA, MIGA, IFC and ICSID, which were established immediately after the ratification of Bretton Woods agreements.
2. All members of IMF are IBRD members and vice-versa.
3. The IBRD focusses on middle-income and creditworthy poor countries whereas the IDA focusses on the poorest countries of the world.
4. IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world.
Select the correct answer using the code given below.
(a)  1, 2, 3
(b)  2, 3, 4
(c)  1, 2, 3, 4
(d)  None


5.. Consider the following and mark the correct statements.

  1. The World Bank is a non-profit making organization.
  2. The World Bank acquires most of its financial resources by borrowing on the international bond market.
  3. India has been one of the founder member of IFC.
  4. MIGA promotes FDI in developing countries by insuring investors against political risk, advising governments on attracting investments etc.

Select the correct answer using the code given below.

(a)  1, 4

(b)  1, 2, 4
(c)  2, 3, 4
(d)  1, 2, 3, 4


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