1
Question
Consider the following about the decision making process in IMF
1. All countries have equal say in decision making
2. The quota system decides the amount of loan a country can avail at any time from the IMF
Which of the above statements are correct?
Consider the following about the decision making process in IMF
1. All countries have equal say in decision making
2. The quota system decides the amount of loan a country can avail at any time from the IMF
Which of the above statements are correct?
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Solution
The correct option is B 2 only
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The IMF is a quota-based institution. Quotas are the building blocks of the IMF's financial and governance structure. An individual member country's quota broadly reflects its relative position in the world economy. Quotas are denominated in Special Drawing Rights (SDRs), the IMF's unit of account.
The Board normally makes decisions based on consensus, but sometimes formal votes are taken. The votes of each member equal the sum of its basic votes and quota-based votes. Therefore, a member's quota determines its voting power. So all countries don't have equal say in decision making.
<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> The IMF is a quota-based institution. Quotas are the building blocks of the IMF's financial and governance structure. An individual member country's quota broadly reflects its relative position in the world economy. Quotas are denominated in Special Drawing Rights (SDRs), the IMF's unit of account.
The Board normally makes decisions based on consensus, but sometimes formal votes are taken. The votes of each member equal the sum of its basic votes and quota-based votes. Therefore, a member's quota determines its voting power. So all countries don't have equal say in decision making.
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