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Which of the following parameter is not considered while calculating a country's quota in IMF?
Gross Domestic Product
Foreign Exchange Reserves
Economic Variability
Current Account Deficit
Fourth is incorrect. Current Account Deficit is not the parameter considered while calculating a country's quota in IMF. The IMF uses a quota formula to help assess a member’s relative position. The current quota formula is a weighted average of GDP (weight of 50 percent), openness (30 percent), economic variability (15 percent), and international reserves (5 percent). For this purpose, GDP is measured through a blend of GDP—based on market exchange rates (weight of 60 percent) and on PPP exchange rates (40 percent). The formula also includes a “compression factor” that reduces the dispersion in calculated quota shares across members. Quotas are denominated in Special Drawing Rights (SDRs), the IMF’s unit of account.
By: Vishal ProfileResourcesReport error
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