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IMF and World Bank

Assertion: Th...

Question

Assertion: The IMF and World Bank shows a tilt towards richer and powerful nations.
Reason: The value of a vote is determined by the money contributed by the country to the fund.

A

Both assertion and reason are true and the reason is the correct explanation for the assertion.

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B

Both assertion and reason are true but the reason is not the correct explanation for the assertion.

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C

Assertion is true but Reason is false.

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D

Assertion is false but Reason is true.

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Solution

The correct option is A Both assertion and reason are true and the reason is the correct explanation for the assertion.
In the International Monetary Fund (IMF), decisions are made based on the votes. However, the value of a vote is determined by the money contributed by the country to the fund. Even in the World Bank, votes are proportional to the shareholdings that the member countries own.This leaves the rest of the countries with a minimal role in decision making.

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