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  1. Home
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International Relations·Easy

A country is said to have high ‘Quota’ under the International Monetary Fund (IMF). In this context which of the following statements is/are correct? 1. It means that the country has a higher voting share in the IMF decisions. 2. It means that it has high FOREX reserves. 3. It means that it can take more loans from the IMF. Select the correct answer using the code given below:

A country is said to have high ‘Quota’ under the International Monetary Fund (IMF). In this context which of the following statements is/are correct?

1. It means that the country has a higher voting share in the IMF decisions.

2. It means that it has high FOREX reserves.

3. It means that it can take more loans from the IMF.

Select the correct answer using the code given below:

Options

  1. a.

    1 only

  2. b.

    1 and 2 only

  3. c.

    3 only

  4. d.

    1, 2 and 3

    Correct answer

Explanation

• Quota determines the amount of fund that a country has to give to the International Monetary Fund (IMF), the voting share it can enjoy and the amount of loans it can take from the IMF.

• Quotas are denominated in Special Drawing Rights, which is the reserve currency of the IMF and thus, it means that it has high Forex reserves.

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