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    Question

    Which of the following statements about the

    International monetary fund (IMF) is/are correct? 1. Reduce poverty around the world is one of the objectives of IMF 2. Special Drawing Rights (SDRs) is IMF's currency 3. India is a founder member of the IMF. Select the correct answer from the codes given below:
    A 1 and 2 only Correct Answer Incorrect Answer
    B 1 and 3 only Correct Answer Incorrect Answer
    C 2 and 3 only Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer

    Solution

    ● Statement 1 is correct: Objectives of the IMF are as following: ·         Foster global monetary cooperation ·         Secure financial stability and facilitate international trade ·         Promote high employment and sustainable economic growth ·         Reduce poverty around the world ·         Promotion of exchange rate stability, and an international payment system. ● Statement 2 is incorrect: Special Drawing Rights (SDRs) is the IMF’s unit of account and not a currency. The currency value of the SDR is determined by summing the values in U.S. dollars, based on market exchange rates, of a SDR basket of currencies. SDR basket of currencies includes the U.S. dollar, Euro, Japanese yen, pound sterling and the Chinese renminbi (included in 2016). ● Statement 3 is correct: India is a founder member of the IMF. è The Finance Minister of India is the ex-officio Governor on the Board of Governors of the IMF. The RBI Governor is the Alternate Governor at the IMF.  

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