📚 UPSC Current Affairs
Medium
Practice Question
Regarding the financial mechanisms established by BRICS, consider the following statements:
- Founding members hold an equal stake and contribute an equal share to the New Development Bank (NDB).
- The Contingency Reserve Agreement (CRA) operates under an equal contribution stipulation, where all founding members contribute the same percentage of assets.
- A common BRICS currency for international trade was officially launched and implemented at the 2023 South Africa summit.
Which of the statements given above is/are INCORRECT?
Select an Option to Test Yourself:
💡 Step-by-Step Detailed Solution
Correct Answer: Option CAnswer: C) 2 and 3 only
Explanation:
- Statement 1 is correct: For the NDB, each founding BRICS member holds an equal stake and contributes an equal share to the bank's assets.
- Statement 2 is incorrect: Unlike the NDB, the Contingency Reserve Agreement (CRA) is not bound by an equal contribution stipulation; China alone provided 41% of the CRA's initial assets.
- Statement 3 is incorrect: Although BRICS members have discussed the creation of a common currency, no concrete steps have been taken to accomplish this goal.
Academic Classification
Subject
UPSC Current Affairs
Section
BRICS Summit
Marks Scheme
+2 / -0.65
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