BANKING AFFAIRS

Detailed explanation-1: -Correct Option: C. Countries contribute money to a pool through a quota system from which countries with payment imbalances can borrow funds temporarily. The IMF’s membership is divided along income lines: certain countries provide the financial resources while others use these resources.

Detailed explanation-2: -Quotas are denominated in Special Drawing Rights (SDRs), the IMF’s unit of account. The largest member of the IMF is the United States, with a current quota (as of March 2017) of SDR82. 99 billion (about US$118 billion), and the smallest member is Tuvalu, with a quota of SDR2. 5 million (about US$3.5 million).

Detailed explanation-3: -Why in News? According to the International Monetary Fund (IMF), India will alone contribute 15% of the global growth in 2023 and continues to remain a relative “bright spot” in the world economy.

Detailed explanation-4: -We Are A Global Organization 44 founding member countries sought to build a framework for international economic cooperation. Today, its membership embraces 190 countries, with staff drawn from 150 nations.

Detailed explanation-5: -The IMF provides financial assistance and works with governments to ensure responsible spending. The IMF offers various types of loans that are tailored to countries’ different needs and specific circumstances. Loans to low-income countries carry a zero interest rate.