ECONOMICS
ECONOMIC INSTITUTIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Purchasing power parity
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Size of country’s economy
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Each country will have one vote without veto power
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Both A & B
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Detailed explanation-1: -Explanation: The voting shares are based on the size of each member country’s economy and not contribution to the bank’s authorized capital.
Detailed explanation-2: -Voting Rights: China is the largest shareholder with 26.61 % voting shares in the bank followed by India (7.6%), Russia (6.01%) and Germany (4.2 %). The regional members hold 75% of the total voting power in the Bank.
Detailed explanation-3: -The Mission of the AIIB is to improve social and economic outcomes in Asia. Asian Infrastructure Investment Bank is headquartered in Beijing and started operations in 2016. China is the largest shareholder with 26.61 % voting shares in the bank, followed by India (7.6%), Russia (6.01%), and Germany (4.2 %).
Detailed explanation-4: -India is the second-largest shareholder in Asian Infrastructure Investment bank. The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank that aims to support the building of infrastructure in the Indo-Pacific region. Headquartered in Bejing and began operations in January 2016.
Detailed explanation-5: -The Idea Behind the Creation of the AIIB Overall, the bank aims to improve infrastructure in Asia and strengthen the economies of countries in the region through capital investment and business partnerships. As a China-led enterprise, it also stands to strengthen China’s position as a global economic power.