Question : The capital of IMF is made up by contribution of the:
Option 1: credit
Option 2: deficit financing
Option 3: member nations
Option 4: borrowings
Correct Answer: member nations
Solution : The correct option is member nations.
The capital of the International Monetary Fund (IMF) is primarily composed of financial contributions from its member countries. These contributions, also known as quotas, are determined based on a country's economic size and importance in the global economy. Each member country is assigned a quota, which represents its financial commitment to the IMF. Quotas are typically reviewed and adjusted periodically to reflect changes in the global economy.
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