Asian Infrastructure Investment Bank, AIIB, Jin Liqun - General awareness questions on current affairs

1)   China has chosen a Pakistan based highway construction program for funding through AIIB. Which firm is the co-financer?

a. ADB
b. IDB
c. WB
d. None of the above
Answer  Explanation 

ANSWER: ADB

Explanation:
China-sponsored Asian Infrastructure Investment Bank (AIIB) has chosen a Pakistan based highway construction program among the first batch of projects it will finance.

  • The Asian Development Bank has also joined as a co-financer.
  • In effect, the two banks have agreed to support one of the projects in the $46 billion China Pakistan Economic Corridor (CPEC), which is the first program under the Silk Road plan introduced by Chinese president Xi Jinping.


2)   Who from India has been elected to the board of directors of the China-sponsored Asian Infrastructure Investment Bank (AIIB)?

a. Raghuram Rajan
b. Dinesh Sharma
c. Amartya Sen
d. Harun Rashid Khan
Answer  Explanation 

ANSWER: Dinesh Sharma

Explanation:
The election of India to board of directors of the AIIB expected to provide significant role for it as it is the forum that approves the loans for projects. It is a 12-member board.


3)   Who has been elected to the board of directors of the China sponsored AIIB?

a. Vimlesh Sharma
b. Rakesh Sharma
c. Dinesh Sharma
d. None of the above
Answer  Explanation 

ANSWER: Dinesh Sharma

Explanation:
India is one of the founding members of the Asian Infrastructure Investment Bank has been elected to the board of directors of China sponsored AIIB expected to commence loan approvals towards the close of the year. Dinesh Sharma Additional Secretary of Ministry of Finance has been elected to the 12 member board for which a secret ballot has been held. Authorised capital of USD 100 billion and subscribed capital of USD 50 billion will yield investment of various sectors such as urban construction and energy as well as transportation.


4)   China backed Asian Infrastructure Investment Bank has been formally launched by whom?

a. President XI Jingling
b. President Xi Jingping
c. President Shinzo Abe
d. None of the above
Answer  Explanation 

ANSWER: President Xi Jingping

Explanation:
China based Asian Infrastructure Investment Bank in which India and 56 other nations have joined as founding members was formally launched by President Xi Jingping. Dinesh Sharma leads the Indian delegation for which the US based ADB has identified potential co-financing projects with AIIB in areas such as transport, urban and water, renewable energy etc.


5)   Which of the following statements is/are correct about AIIB?

1. Singapore is founding member of AIIB.
2. China, India and Russia are the three largest shareholders of AIIB


a. Only 1
b. Only 2
c. Both
d. None
Answer  Explanation 

ANSWER: Both

Explanation:
- China holds 30.34 percent, while India holds 8.52 percent and 6.66 percent stake were held by Russia.
- U.K., France, Germany and Italy have joined the bank, despite opposition from USA.
- United States, Japan and Canada stayed away from joining AIIB.
- The capital of the bank is $100 billion, equivalent to 2/3 of the capital of the Asian Development Bank and about half that of the World Bank.
- Jin Liqun is president of AIIB.


6)   ____________ on 8th December 2015 became the 10th country to ratify AoA /Articles of Agreement for AIIB.

a. China
b. Russia
c. Germany
d. Luxembourg
Answer  Explanation 

ANSWER: Luxembourg

Explanation:
Luxembourg on 8th December 2015 became the 10th country to ratify the Articles of Agreement (AoA) that will lay the legal framework for the China-initiated Asian Infrastructure Investment Bank (AIIB). Australia, Austria, Brunei Darussalam, China, Mongolia, Nepal, New Zealand, Singapore and United Kingdom ratified the 60-article agreement so far. 10 nations are among the 57 member founder countries of the multilateral bank. Its headquarters are in Beijing.


7)   On 22nd May’15, the China-led Asian Infrastructure Investment Bank (AIIB) finalized Articles of Agreement (AoA). How many members are in the Asian Infrastructure Investment Bank (AIIB)?

a. 15
b. 24
c. 57
d. 60
Answer  Explanation 

ANSWER: 57

Explanation:
The 57-member bank announced that it would be operational by the end of this year. The announcement came after the conclusion of '5th Chief Negotiators' Meeting on Establishing the AIIB', in Singapore. China, with a share of 100 billion dollar is likely take a 25-30 percent stake in the AIIB while India, with a likely share between 10 to 15 percent could be the second-largest shareholder. In all, Asian countries will own between 72-75 percent of the assets of the bank, while European and other nations will own the rest.


8)   Consider the following statements

1. Russia is the third largest shareholder of AIIB.
2. Iran is the founding member of AIIB.

Which of the above statements is/are correct?


a. Only 1
b. Only 2
c. Both
d. None
Answer  Explanation 

ANSWER: Both

Explanation:
China, India and Russia are the three largest shareholders, taking a 30.34 percent, 8.52 percent, 6.66 percent stake, respectively. Their voting shares are calculated at 26.06 percent, 7.5 percent and 5.92 percent.


9)   Which of the following statements is / are correct?

1. Brazil, Egypt ,Germany are founding members of AIIB.
2. K.V. Kamath, is the newly appointed chief of AIIB.


a. Only 1
b. Only 2
c. Both
d. None
Answer  Explanation 

ANSWER: Only 1

Explanation:
K.V. Kamath, is the newly appointed chief of the New Development Bank of BRICS countries. China has named its former Finance Minister, Jin Liqun, as its choice to head the Beijing-backed Asian Infrastructure Investment Bank


10)   Which of the following factor determines the voting share of AIIB?

a. Contribution of the country to the bank's authorized capital
b. Purchasing power parity
c. Size of country's economy
d. Each country will have one vote without veto power
Answer  Explanation 

ANSWER: Size of country's economy

Explanation:
The voting shares are based on the size of each member country's economy and not contribution to the bank's authorized capital.

China is highest contributor to AIIB with 29.78 billion US dollars. China will have 26.06 per cent of the voting rights along with veto powers for certain key decisions. India is second largest shareholder with 8.52 per cent stake and voting share of 7.5 per cent. While Russia is third largest shareholder with 6.66 stake and voting share of 5.92 per cent.