IMF, Christine Lagarde - General awareness questions on current affairs

1)   Post demonetisation, IMF has cut down the Indian growth rate to what percent?

a. 6.3
b. 6.4
c. 6.5
d. 6.6
Answer  Explanation 

ANSWER: 6.6

Explanation:
IMF has cut down India's growth rate for the current fiscal year to 6.6 percent. The previous estimate was 7.6%.

The slowing of the growth rate is on account of temporary negative consumption shock of demonetisation after the WB decelerated India's growth estimates.

Growth forecast for the current and next fiscal year were trimmed by one percentage and 0.4 percentage points, due to temporary negative consumption shock .

This has been caused by cash shortage and payment disruption noted with recent currency note withdrawal and exchange, as per World Economic Outlook released by the IMF.

IMF also said after a lackluster outturn in 2016, economic activity will pick up in the next 2 years. This is more so for the emerging market and developing economies.

Global growth for 2016 is now 3.1 percent in line with the Oct 2016 forecast.

The economic activities in emerging markets and developing economies/EMDEs is to accelerate in 2017-2018 with global growth at 3.4 and 3.6 percent respectively.

India's growth in 2017 is projected at growth rate of 7.2% as against previous growth forecast of 7.6 percent.

Indian economy is expected to revive with 7.7% growth in 2018.

Cut in the growth rate comes after WB decelerated India's GDP growth for 2016-2017 fiscal to 7 percent from previous estimate of 7.6 percent citing impact of demonetisation.

India would regain momentum in coming years. India continues to be among the fastest growing countries in the emerging economies.

In 2016, China with a growth percentage of 6.7% has outperformed India. IMF has forecasted China's growth rate to 6.5% for 2017 based on continued policy support.

In 2018, China is projected to grow at 6 percent against India's 7.7%.

IMF: Know More

  • Abbreviation stands for: International Monetary Fund
  • Formation: 27 December 1945
  • Type: International financial institution
  • Headquarters: Washington, D.C., United States
  • Membership: 189 countries
  • Official language: English
  • Managing Director: Christine Lagarde
  • Main organ: Board of governors
  • Parent organization: United Nations
  • Staff: 2,700


2)   International Monetary Fund head Christine Lagarde was on 19th Dec convicted over a massive payout to which tycoon?

a. Bernard Tapie
b. Lucien Arbel
c. Etienne Mimard
d. Andre Michelin
Answer  Explanation 

ANSWER: Bernard Tapie

Explanation:
International Monetary Fund head Christine Lagarde was on 19th Dec 2016 convicted for negligence over a massive state payout to a tycoon when she was French finance minister.

Though convicted, she was not given a sentence.

The 2007 decision by Lagarde to permit a dispute over flamboyant businessman Bernard Tapie's sale of the Adidas sports brand to Credit Lyonnais bank to be resolved by private arbitration panel was under scrutiny.

The 60-year-old former corporate lawyer is also accused of failing to challenge the 404-million-euro (USD 422 million) award that emerged from the arbitration.

The payout raised concerns given Tapie's overt support for Lagarde's then boss, ex-president Nicolas Sarkozy, and it was subsequently cancelled by the courts.

Tapie had sold Adidas to Credit Lyonnais for the equivalent of 315.5 million euros in 1993.

The bank sold it on the following year for 701 million euros, prompting claims from Tapie that he had been cheated.

Another ex IMF head, Rodrigo Rato of Spain, is currently standing trial on charges of misusing funds when he was head of Spanish lender Bankia.

International Monetary Fund

  • Abbreviation: IMF
  • Formation: 27 December 1945
  • Type: International financial institution
  • Headquarters: Washington, D.C., United States'
  • Membership: 189 countries
  • Official language: English
  • Managing Director: Christine Lagarde
  • Main organ: Board of governors
  • Parent organisation: United Nations
  • Website: www.imf.org


3)   On June 7 IMF has approved 1.5 billion US dollar loan to which country?

a. India
b. Bangladesh
c. Sri Lanka
d. US
Answer  Explanation 

ANSWER: Sri Lanka

Explanation:
IMF on June 7th 2016 approved the US $1.5 billion loan to Sri Lanka. IMF has transferred 168 million US dollars as the first instalment with immediate effect to provide support for the country’s economy

  • IMF executive board accepted the 36 month extended arrangement under Extended Fund Facility with Sri Lanka under SDR
  • With an early disbursement of 168.1 million US dollars to be made immediately, the remaining amount will be settled in 6 instalments on quarterly review
  • Additional 650 million US dollars support will be brought to other multilateral and bilateral loans bring total support to US 2.2 billion US dollars


4)   IMF has retained the growth forecast for India at ___ percent driven largely by private consumption.

a. 7.4 percent
b. 7.5 percent
c. 7.6 percent
d. 7.7 percent
Answer  Explanation 

ANSWER: 7.5 percent

Explanation:
International Monetary Fund has retained growth forecast for India at 7.5 percent driven mostly by private consumption even as sluggish credit growth and weak exports impact the economy. India’s growth momentum is driven by private consumption benefiting from low energy prices and higher real incomes.

  • IMF has said policy makers will speed up structural reform implementation- weak exports and sluggish credit growth stand in the way
  • Additional steps in relaxing bottlenecks especially in mining and labour market reforms will increase labour market flexibility and foster inclusive growth.
  • As per IMF, growth in Asia and Pacific will remain strong at 5.3 percent this year


5)   Sunil Sabharwal has become the first Indian American to occupy a key administration post in which international organisation?

a. WHO
b. IMF
c. World Bank
d. ADB
Answer  Explanation 

ANSWER: IMF

Explanation:
Independent investor Sunil Sabharwal became the first Indian American to occur a key admin post at the IMF He assumed charge of the post of Alternate Executive Director of the IMF. This is one of the most important posts in the IMF. He has previously worked for GE Capital, Ogone and also worked for Warburg Pincus in an advisory capacity.


6)   Global economic growth will be below par next year according to IMF MD. Who is she?

a. Christine Lagarde
b. Janet Yellan
c. Angela Merkel
d. None of the above
Answer  Explanation 

ANSWER: Christine Lagarde

Explanation:
Global economic growth will be disappointing within the year, according to head of IMF MD Christine Lagarde who said the prospect of rising interest rates in the US and economic slowdown in China would lead to economic vulnerability worldwide. Additionally, growth in global trade has lowered considerable and decline in raw materials is an issue for economies linked to these. Moreover, financial risks are rising in the emerging markets. Start of normalisation of the US monetary policy and shift towards consumption led growth were needed to be carried out smoothly.


7)   Executive Board of IMF on Monday decided to include which currency into basket of currencies that make up its SDR or Special Drawing Right?

a. Australian dollar
b. Chinese yuan
c. Swiss francs
d. None of the above
Answer  Explanation 

ANSWER: Chinese yuan

Explanation:
Executive Board of IMF has decided to include the renminbi (yuan), into its basket of currencies that make up the IMF’s Special Drawing Right (SDR). The decision was taken during the IMF’s five-yearly review of the basket of currencies. SDR was created by IMF in the late 1960s and allows members to draw upon reserve currencies in the basket. Currently, these include dollar, euro, yen and pound sterling. Yuan will now be included from October 1, 2016.