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Which of the following statements about quotas in the International Monetary Fund (IMF) is false? A. Quotas determine how much each country contributes to IMF funding. B. Quotas are determined by the size of a nation’s economy. C. The US has 17% of all votes on policy decisions. D. The US and Japan are the only countries with enough votes to block certain decisions single-handedly.

Jessie Thompson

in Geography

1 answer

1 answer

Kristi Hammond on March 7, 2018

There are some basic facts about the IMF. Quotas determine the amount of funds that each member state should contribute to the common fund. Some of them will be in international currency and some of them in the state of the own currency. The fees are determined in relation to the sice of the economy of a country, since the funding needs to be proportionate to the money-giving capacity. Votes on the IMF Board does not correspond proportionally to the budget, but are strongly correlated. We can see on the official website that the american funding for 17.46% of the budget and has a 16.52% (17%) of the voting power. Therefore, the fact that D is wrong. Japan and the united states have been combined for about 23% of the votes.

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