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Consider the following statements related to the IMF:
1. The IMF's Board of Governors conducts general quota reviews at regular intervals usually every five years.
2. Any changes in quotas must be approved by the UN General Assembly by the majority.
3. A member's quota can be changed without its consent based on its economic development.
4. A member can borrow up to 200 per cent of its quota annually and 600 per cent cumulatively.
Which of the above-given statements are correct?
1, 2 and 3 only
3 and 4 only
1 and 4 only
All of the above
Let’s look at each statement:
- Statement 1: Correct. The IMF Board of Governors does review quotas, usually every five years.
- Statement 2: Incorrect. Changes in IMF quotas need approval by the IMF's Board of Governors (generally by an 85% majority), not the UN General Assembly.
- Statement 3: Incorrect. A member’s quota cannot be changed without its consent.
- Statement 4: Correct. Currently, normal IMF access limits are 200% of quota annually and 600% cumulatively.
Options:
- Option 1: 1, 2 and 3 only (statement 2 and 3 are wrong)
- Option 2: 2, 3 and 4 only (statement 2 and 3 are wrong)
- Option 3: 1 and 4 only (only 1 and 4 are right)
- Option 4: All of the above (statements 2 and 3 are wrong)
Correct Answer: Option 3: 1 and 4 only
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