|Which of the following statement is not correct in relation to International Monetary Fund?|
|1. India is a founder member of the IMF.|
|2. IMF conducts regular review of India's economic status under Article IV.|
|3. India's quota in the IMF is more than 2 percent|
|4. Finance Minister is ex-officio Governor of the IMF|
A) 1 and 4
B) 3 only
C) 1 only
D) 2 and 4
Correct Answer: B
Solution :[b] Quota subscriptions are a central component of the IMF's financial resources. Each member country of the IMF is assigned a quota, based broadly on its relative position in the world economy. A member country's quota determines its maximum financial commitment to the IMF, its voting power, and has a bearing on its access to IMF financing. As part of the Fourteenth General Review of Quotas (2010, India's total quota has been increased to SDR 13,114.4 million from SDR 5821.5 million.With this increase, India's share would increase to 2.75 % (from 2.44%), making it the 8th largest quota holding country in the IMF. India joined the IMF on December 27, 1945, as one of the IMF's original members. The Board of Governors, the highest decision-making body of the IMF, consists of one governor and one alternate governor for each member country. The governor is appointed by the member country and is usually the minister of finance or the governor of the central bank. All powers of the IMF are vested in the Board of Governors. The Board of Governors may delegate to the Executive Board all except certain reserved powers. The Board of Governors normally meets once a year.
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