Question

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.

Answer 1

D is the answer on E2020

Answer 2

There are some basic facts about the IMF. Quotas determine how much funding each member state has to contribute to the common fund. Some of it will be in international currency and some of it in the state's own currency. Quotas are determined relative to the sice of the economy of a country since funding needs to be proportionate to money-giving ability. Votes on the IMF Board do not correspond proportionally to the budget but they are tightly correlated. We can see on the official website that US funds 17.46% of the budget and it has a 16.52% (17%) voting power. Hence, the fact D is wrong. Japan and the US have combined around 23% of the votes.