Consider the following statements with respect to IMF:
- Member countries have to contribute only in World currencies or Gold in IMF financial reserve as per assigned quotas.
- SDRs issued by IMF helps in balancing current account deficit of an economy.
Which of the above statements is/are correct?
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