UPSC Static Quiz – Economy : 4 December 2024

UPSC Static Quiz – Economy : 4 December 2024 We will post 5 questions daily on static topics mentioned in the UPSC civil services preliminary examination syllabus. Each week will focus on a specific topic from the syllabus, such as History of India and Indian National Movement, Indian and World Geography, and more.We are excited to bring you our daily UPSC Static Quiz, designed to help you prepare for the UPSC Civil Services Preliminary Examination. Each day, we will post 5 questions on static topics mentioned in the UPSC syllabus. This week, we are focusing on Indian and World Geography.

Why Participate in the UPSC Static Quiz?

Participating in daily quizzes helps reinforce your knowledge and identify areas that need improvement. Regular practice will enhance your recall abilities and boost your confidence for the examination. By covering various topics throughout the week, you ensure a comprehensive revision of the syllabus.

#### Quiz-summary

0 of 5 questions completed

Questions:

#### Information

Best of Luck! 🙂

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading...

You must sign in or sign up to start the quiz.

You have to finish following quiz, to start this quiz:

0 of 5 questions answered correctly

Your time:

Time has elapsed

You have reached 0 of 0 points, (0)

#### Categories

• Not categorized 0%

• Question 1 of 5 1. Question Consider the following statements regarding International Monetary Fund (IMF). The IMF was set up with the aim to bring about international economic coordination to prevent competing currency devaluation by countries trying to promote their own exports. It is considered as the last resort lender for countries facing severe economic crises. Quotas are the IMF’s main source of financing, wherein each member of the IMF is assigned a quota, based broadly on its relative position in the world economy. How many of the above statements is/are correct? a) Only one b) Only two c) All three d) None Correct Solution: c) The IMF was set up in 1945 with the aim to bring about international economic coordination to prevent competing currency devaluation by countries trying to promote their own exports. It later went on to become a last resort lender for countries facing severe economic crises. IMF funds come from three sources: member quotas, multilateral and bilateral borrowing agreements. Quotas are the IMF’s main source of financing, wherein each member of the IMF is assigned a quota, based broadly on its relative position in the world economy. Incorrect Solution: c) The IMF was set up in 1945 with the aim to bring about international economic coordination to prevent competing currency devaluation by countries trying to promote their own exports. It later went on to become a last resort lender for countries facing severe economic crises. IMF funds come from three sources: member quotas, multilateral and bilateral borrowing agreements. Quotas are the IMF’s main source of financing, wherein each member of the IMF is assigned a quota, based broadly on its relative position in the world economy.

#### 1. Question

Consider the following statements regarding International Monetary Fund (IMF).

• The IMF was set up with the aim to bring about international economic coordination to prevent competing currency devaluation by countries trying to promote their own exports.

• It is considered as the last resort lender for countries facing severe economic crises.

• Quotas are the IMF’s main source of financing, wherein each member of the IMF is assigned a quota, based broadly on its relative position in the world economy.

How many of the above statements is/are correct?

• a) Only one

• b) Only two

• c) All three

Solution: c)

The IMF was set up in 1945 with the aim to bring about international economic coordination to prevent competing currency devaluation by countries trying to promote their own exports. It later went on to become a last resort lender for countries facing severe economic crises.

IMF funds come from three sources: member quotas, multilateral and bilateral borrowing agreements. Quotas are the IMF’s main source of financing, wherein each member of the IMF is assigned a quota, based broadly on its relative position in the world economy.

Solution: c)

• Question 2 of 5 2. Question Consider the following statements regarding Financial Stability Board (FSB). The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. It was established after the G20 London summit as a successor to the Financial Stability Forum (FSF). Hosted and funded by the World Bank, the board is based in Basel, Switzerland. Which of the above statements is/are correct? a) 1 only b) 1 and 2 only c) 2 and 3 only d) 1, 2 and 3 Correct Solution: b) The Financial Stability Board (founded in 2009; HQ: Basel, Switzerland) is an international body that monitors and makes recommendations about the global financial system. It was established after the G20 London summit (2009) as a successor to the Financial Stability Forum. It is hosted and funded by the Bank for International Settlements. Incorrect Solution: b) The Financial Stability Board (founded in 2009; HQ: Basel, Switzerland) is an international body that monitors and makes recommendations about the global financial system. It was established after the G20 London summit (2009) as a successor to the Financial Stability Forum. It is hosted and funded by the Bank for International Settlements.

#### 2. Question

Consider the following statements regarding Financial Stability Board (FSB).

• The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system.

• It was established after the G20 London summit as a successor to the Financial Stability Forum (FSF).

• Hosted and funded by the World Bank, the board is based in Basel, Switzerland.

Which of the above statements is/are correct?

• b) 1 and 2 only

• c) 2 and 3 only

• d) 1, 2 and 3

Solution: b)

The Financial Stability Board (founded in 2009; HQ: Basel, Switzerland) is an international body that monitors and makes recommendations about the global financial system. It was established after the G20 London summit (2009) as a successor to the Financial Stability Forum.

It is hosted and funded by the Bank for International Settlements.

Solution: b)

It is hosted and funded by the Bank for International Settlements.

• Question 3 of 5 3. Question Consider the following statements regarding International Monetary and Financial Committee (IMFC). The IMFC advises and reports to the IMF Board of Governors on the supervision and management of the international monetary and financial system. The size and the composition of the IMFC mirrors that of the Executive Board of IMF. The IMFC operates by consensus, including on the selection of its chair. How many of the above statements is/are incorrect? a) Only one b) Only two c) All three d) None Correct Solution: d) The IMFC advises and reports to the IMF Board of Governors on the supervision and management of the international monetary and financial system, including on responses to unfolding events that may disrupt the system. Although the IMFC has no formal decision-making powers, in practice, it has become a key instrument for providing strategic direction to the work and policies of the Fund. The size and the composition of the IMFC mirrors that of the Executive Board. The IMFC has 24 members who are central bank governors, ministers, or others of comparable rank. The IMFC operates by consensus, including on the selection of its chair. A number of international institutions, including the World Bank, participate as observers in the IMFC’s meetings. Incorrect Solution: d) The IMFC advises and reports to the IMF Board of Governors on the supervision and management of the international monetary and financial system, including on responses to unfolding events that may disrupt the system. Although the IMFC has no formal decision-making powers, in practice, it has become a key instrument for providing strategic direction to the work and policies of the Fund. The size and the composition of the IMFC mirrors that of the Executive Board. The IMFC has 24 members who are central bank governors, ministers, or others of comparable rank. The IMFC operates by consensus, including on the selection of its chair. A number of international institutions, including the World Bank, participate as observers in the IMFC’s meetings.

#### 3. Question

Consider the following statements regarding International Monetary and Financial Committee (IMFC).

• The IMFC advises and reports to the IMF Board of Governors on the supervision and management of the international monetary and financial system.

• The size and the composition of the IMFC mirrors that of the Executive Board of IMF.

• The IMFC operates by consensus, including on the selection of its chair.

How many of the above statements is/are incorrect?

• a) Only one

• b) Only two

• c) All three

Solution: d)

The IMFC advises and reports to the IMF Board of Governors on the supervision and management of the international monetary and financial system, including on responses to unfolding events that may disrupt the system.

Although the IMFC has no formal decision-making powers, in practice, it has become a key instrument for providing strategic direction to the work and policies of the Fund.

The size and the composition of the IMFC mirrors that of the Executive Board. The IMFC has 24 members who are central bank governors, ministers, or others of comparable rank.

The IMFC operates by consensus, including on the selection of its chair. A number of international institutions, including the World Bank, participate as observers in the IMFC’s meetings.

Solution: d)

Although the IMFC has no formal decision-making powers, in practice, it has become a key instrument for providing strategic direction to the work and policies of the Fund.

The size and the composition of the IMFC mirrors that of the Executive Board. The IMFC has 24 members who are central bank governors, ministers, or others of comparable rank.

The IMFC operates by consensus, including on the selection of its chair. A number of international institutions, including the World Bank, participate as observers in the IMFC’s meetings.

• Question 4 of 5 4. Question Consider the following statements regarding G20 group. The working of G20 is divided into two tracks, i.e, the finance track and the Sherpa track. The Sherpa track focuses on broader issues such as political engagement, anti-corruption, development and energy. IMF and World Bank are the permanent guest invitees for G20 summits. How many of the above statements is/are correct? a) Only one b) Only two c) All three d) None Correct Solution: c) The working of G20 is divided into two tracks: The finance track: It comprises all meetings with G20 finance ministers and central bank governors and their deputies. Meeting several times throughout the year they focus on monetary and fiscal issues, financial regulations, etc. The Sherpa track: It focuses on broader issues such as political engagement, anti-corruption, development, energy, etc. Each G20 country is represented by its Sherpa; who plans, guides, implements, etc. on behalf of the leader of their respective country. The work of G20 members is supported by several international organizations (Permanent guest invitees). These organizations include: The Financial Stability Board (FSB). The FSB, which was established by G20 leaders following the onset of the global financial crisis, The International Labour Organization (ILO). The International Monetary Fund (IMF). The Organization for Economic Co-operation and Development (OECD) United Nations (UN) World Bank The World Trade Organization (WTO) Incorrect Solution: c) The working of G20 is divided into two tracks: The finance track: It comprises all meetings with G20 finance ministers and central bank governors and their deputies. Meeting several times throughout the year they focus on monetary and fiscal issues, financial regulations, etc. The Sherpa track: It focuses on broader issues such as political engagement, anti-corruption, development, energy, etc. Each G20 country is represented by its Sherpa; who plans, guides, implements, etc. on behalf of the leader of their respective country. The work of G20 members is supported by several international organizations (Permanent guest invitees). These organizations include: The Financial Stability Board (FSB). The FSB, which was established by G20 leaders following the onset of the global financial crisis, The International Labour Organization (ILO). The International Monetary Fund (IMF). The Organization for Economic Co-operation and Development (OECD) United Nations (UN) World Bank The World Trade Organization (WTO)

#### 4. Question

Consider the following statements regarding G20 group.

• The working of G20 is divided into two tracks, i.e, the finance track and the Sherpa track.

• The Sherpa track focuses on broader issues such as political engagement, anti-corruption, development and energy.

• IMF and World Bank are the permanent guest invitees for G20 summits.

How many of the above statements is/are correct?

• a) Only one

• b) Only two

• c) All three

Solution: c)

The working of G20 is divided into two tracks:

• The finance track: It comprises all meetings with G20 finance ministers and central bank governors and their deputies. Meeting several times throughout the year they focus on monetary and fiscal issues, financial regulations, etc.

• The Sherpa track: It focuses on broader issues such as political engagement, anti-corruption, development, energy, etc. Each G20 country is represented by its Sherpa; who plans, guides, implements, etc. on behalf of the leader of their respective country.

The work of G20 members is supported by several international organizations (Permanent guest invitees). These organizations include:

• The Financial Stability Board (FSB). The FSB, which was established by G20 leaders following the onset of the global financial crisis,

• The International Labour Organization (ILO).

• The International Monetary Fund (IMF).

• The Organization for Economic Co-operation and Development (OECD)

• United Nations (UN)

• World Bank

• The World Trade Organization (WTO)

Solution: c)

The working of G20 is divided into two tracks:

The work of G20 members is supported by several international organizations (Permanent guest invitees). These organizations include:

• The Financial Stability Board (FSB). The FSB, which was established by G20 leaders following the onset of the global financial crisis,

• The International Labour Organization (ILO).

• The International Monetary Fund (IMF).

• The Organization for Economic Co-operation and Development (OECD)

• United Nations (UN)

• World Bank

• The World Trade Organization (WTO)

• Question 5 of 5 5. Question Consider the following statements regarding International Monetary Fund (IMF) Quotas. An individual member country’s quota broadly reflects its relative position in the world economy. Quotas are denominated in Special Drawing Rights (SDRs). Any changes in quotas must be approved by a two-thirds majority of the total voting power, and a member’s own quota cannot be changed without its consent. How many of the above statements is/are correct? a) Only one b) Only two c) All three d) None Correct Solution: b) Statement 3 is incorrect. The IMF is a quota-based institution. Quotas are the building blocks of the IMF’s financial and governance structure. An individual member country’s quota broadly reflects its relative position in the world economy. Quotas are denominated in Special Drawing Rights (SDRs), the IMF’s unit of account. The IMF’s Board of Governors conducts general quota reviews at regular intervals (no more than five years). Any changes in quotas must be approved by an 85 percent majority of the total voting power, and a member’s own quota cannot be changed without its consent. Incorrect Solution: b) Statement 3 is incorrect. The IMF is a quota-based institution. Quotas are the building blocks of the IMF’s financial and governance structure. An individual member country’s quota broadly reflects its relative position in the world economy. Quotas are denominated in Special Drawing Rights (SDRs), the IMF’s unit of account. The IMF’s Board of Governors conducts general quota reviews at regular intervals (no more than five years). Any changes in quotas must be approved by an 85 percent majority of the total voting power, and a member’s own quota cannot be changed without its consent.

#### 5. Question

Consider the following statements regarding International Monetary Fund (IMF) Quotas.

• An individual member country’s quota broadly reflects its relative position in the world economy.

• Quotas are denominated in Special Drawing Rights (SDRs).

• Any changes in quotas must be approved by a two-thirds majority of the total voting power, and a member’s own quota cannot be changed without its consent.

How many of the above statements is/are correct?

• a) Only one

• b) Only two

• c) All three

Solution: b)

Statement 3 is incorrect.

The IMF is a quota-based institution. Quotas are the building blocks of the IMF’s financial and governance structure. An individual member country’s quota broadly reflects its relative position in the world economy. Quotas are denominated in Special Drawing Rights (SDRs), the IMF’s unit of account.

The IMF’s Board of Governors conducts general quota reviews at regular intervals (no more than five years). Any changes in quotas must be approved by an 85 percent majority of the total voting power, and a member’s own quota cannot be changed without its consent.

Solution: b)

Statement 3 is incorrect.

Join our Official Telegram Channel HERE for Motivation and Fast Updates

Join our Twitter Channel HERE

Follow our Instagram Channel HERE

Stay Consistent

Consistency is key in UPSC preparation. By making the UPSC Static Quiz a part of your daily routine, you will steadily improve your knowledge base and exam readiness. Join us every day to tackle new questions and make your journey towards UPSC success more structured and effective.