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Which statement correctly distinguishes IMF quota from the World Bank's lending role?

A member's IMF quota fixes its financial subscription, its voting power and the scale of financing it can access from the IMF. The World Bank, by contrast, lends for development projects and reforms. Quota is not an interest rate, loan count or tariff limit.

  1. AA member's IMF quota determines its financial contribution, voting power and access to IMF financing, whereas World Bank lending is directed at development projects and reformsCorrect
  2. BIMF quota is the interest rate charged on its loans, while World Bank lending is interest-free for all members
  3. CIMF quota is the maximum number of loans a member can take in a year, and World Bank lending is limited to one project per country
  4. DIMF quota fixes a member's tariff limits, whereas World Bank lending funds the IMF's budget

Explanation

Quotas reflect a member's relative economic size and set its subscription, voting share and borrowing access at the IMF. The World Bank, in contrast, funds development projects and reforms. The other options misstate quota as an interest rate, a loan count or a tariff limit.

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