Question

Which among the following statement(s) is/are correct about Asian Infrastructure Investment Bank (AIIB)?

Code:

• A. 1 only
• B. 2 only
• C. 2, 3 and 4 only
• D. 2 and 3 only

Answer 1

The correct option is B

2 only

It is not an Asian- African but an International Financial institution. It based in Beijing china and was proposed by Chinese president XI Jinping. Therefore statements 1, 3 and 4 are incorrect while the 2^nd statement is correct.

Extra Information:

• The Bank will be headquartered in Beijing.
• The authorised capital of AIIB is 100 billion US Dollar and the initial subscribed capital is expected to be around 50 billion US Dollar. The paid-in ratio will be 20 per cent.
• Voting rights are to be decided after consultations among the members over fixing the bench marks which were expected to be combination of GDP and Purchasing Power Parity (PPP). Based on this formula, India will be second largest share holder of the bank after China.
• The bank will help to bridge the infrastructure deficit by playing a complimentary role along with other financial institutions like ADP and IMF and work for good governance.