IMF's 14th Quota Reforms and Board Reform Amendment

1. Which of the following is not the implication of the IMF Quota Reforms ,on India?
   1. India's vote share has gone upto 2.69% from the current 2.34%.
   2. India along with Brazil, China and Russia (BRIC) are now among 10 largest members of the IMF.
   3. India is now the sixth-largest shareholder in the multilateral agency.
   4. India’s quota share at IMF has now increased to 2.75% from 2.44%.
       
2. The recent quota and board reforms by IMF has/have resulted in:
   1. Shifting of more than 6 per cent of quota shares to dynamic emerging markets and developing countries.
   2. Increasing the financial strength of the IMF, by doubling its permanent capital resources to SDR 477 billion from about SDR 238.5 billion.
   3. Doing away with the category of appointed Executive Directors and shifting to the board consisting entirely of elected Executive Directors.
   4. All of the above.
       
3. Which of the following statements is/are correct regarding the Special Drawing Rights (SDR)?
   1. These are the international reserve of assets under the IMF, from which it lends to countries in times of financial crisis.
   2. Its value is currently based on a basket of four major currencies i.e. U.S. dollar, euro, Japanese yen, and pound sterling.
   3. Both a and b are correct.
   4. Neither a nor b is correct.
       

Answers:

1. c, India is now the eighth-largest shareholder in the multilateral agency
2. d,
3. c,Chinese Renminbi (RMB) has been added as the fifth currency with effect from 1^st October 2016.

References

1. Hindu Business Line Link:http://www.thehindubusinessline.com/economy/imf-quota-reform-marks-a-shift-to-emerging-economies/article8163764.ece
2. Livemint Link: http://www.livemint.com/Politics/qn4sXIEWR4wAVuXAS3naTI/India-gets-more-voting-rights-after-IMF-implements-quota-ref.html
3. IMF Link for SDR : http://www.imf.org/external/pubs/ft/survey/so/2016/pol012716b.htm