Consider the following statements with respect to IMF:

  1. Member countries have to contribute only in World currencies or Gold in IMF financial reserve as per assigned quotas.
  2. SDRs issued by IMF helps in balancing current account deficit of an economy.

Which of the above statements is/are correct?

Answer: [B] 2 Only

First statement is incorrect because member countries contribute as per assigned quota under which 1/4th has to be submitted in world currency and 3/4 in countries domestic currency. IMF is prohibited from buying gold or engaging in other gold transactions until & unless 85 percent majority of total voting power of member countries votes in favor of acceptance of gold as payment from a country.

This question is a part of GKToday's Integrated IAS General Studies Module