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Multilateral Investment Guarantee Agency (MIGA)

Description: Multilateral Investment Guarantee Agency (MIGA) Quiz
Number of Questions: 15
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Tags: economics international finance miga
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What is the primary objective of the Multilateral Investment Guarantee Agency (MIGA)?

  1. To promote foreign direct investment (FDI) in developing countries.

  2. To provide loans to developing countries for infrastructure projects.

  3. To regulate the international financial system.

  4. To promote trade between developed and developing countries.


Correct Option: A
Explanation:

MIGA's primary objective is to promote FDI in developing countries by providing guarantees against non-commercial risks such as political violence, currency inconvertibility, and expropriation.

When was MIGA established?

  1. 1988

  2. 1994

  3. 2000

  4. 2006


Correct Option: A
Explanation:

MIGA was established in 1988 as a member of the World Bank Group.

What types of investments does MIGA guarantee?

  1. Equity investments

  2. Loan investments

  3. Both equity and loan investments

  4. None of the above


Correct Option: C
Explanation:

MIGA guarantees both equity and loan investments in developing countries.

Which of the following is not a risk covered by MIGA's guarantees?

  1. Political violence

  2. Currency inconvertibility

  3. Expropriation

  4. Commercial risk


Correct Option: D
Explanation:

MIGA's guarantees do not cover commercial risks such as changes in market conditions or the failure of a project to generate profits.

What is the maximum amount of coverage that MIGA can provide for a single investment?

  1. $10 million

  2. $20 million

  3. $30 million

  4. $40 million


Correct Option: B
Explanation:

MIGA's maximum coverage for a single investment is $20 million.

How many countries are members of MIGA?

  1. 170

  2. 180

  3. 190

  4. 200


Correct Option: B
Explanation:

As of 2023, MIGA has 180 member countries.

What is the authorized capital of MIGA?

  1. $1 billion

  2. $2 billion

  3. $3 billion

  4. $4 billion


Correct Option: D
Explanation:

MIGA's authorized capital is $4 billion.

Who is the current President of MIGA?

  1. David Malpass

  2. Kristalina Georgieva

  3. Axel van Trotsenburg

  4. Hafez Ghanem


Correct Option: C
Explanation:

Axel van Trotsenburg is the current President of MIGA.

What is the headquarters of MIGA?

  1. Washington, D.C.

  2. New York City

  3. London

  4. Tokyo


Correct Option: A
Explanation:

MIGA's headquarters is located in Washington, D.C.

What is the official website of MIGA?


Correct Option: A
Explanation:

MIGA's official website is www.miga.org.

What is the relationship between MIGA and the World Bank?

  1. MIGA is a subsidiary of the World Bank.

  2. MIGA is an independent organization.

  3. MIGA is a member of the World Bank Group.

  4. MIGA is a partner of the World Bank.


Correct Option: C
Explanation:

MIGA is a member of the World Bank Group, which also includes the World Bank, the International Finance Corporation (IFC), and the International Development Association (IDA).

What are the main sources of MIGA's funding?

  1. Member country contributions

  2. Borrowings from the World Bank

  3. Investment income

  4. All of the above


Correct Option: D
Explanation:

MIGA's funding comes from a combination of member country contributions, borrowings from the World Bank, and investment income.

What is the role of MIGA in promoting sustainable development?

  1. MIGA helps to attract private investment to developing countries.

  2. MIGA promotes the adoption of environmental and social standards in investment projects.

  3. MIGA helps to build capacity in developing countries to manage investment risks.

  4. All of the above


Correct Option: D
Explanation:

MIGA plays a role in promoting sustainable development by attracting private investment to developing countries, promoting the adoption of environmental and social standards in investment projects, and helping to build capacity in developing countries to manage investment risks.

What are some of the challenges facing MIGA in its work?

  1. The increasing complexity of global investment flows.

  2. The rising political and economic risks in developing countries.

  3. The need to balance the interests of investors and host countries.

  4. All of the above


Correct Option: D
Explanation:

MIGA faces a number of challenges in its work, including the increasing complexity of global investment flows, the rising political and economic risks in developing countries, and the need to balance the interests of investors and host countries.

What are some of the future priorities for MIGA?

  1. Expanding MIGA's coverage to new countries and sectors.

  2. Developing new products and services to meet the changing needs of investors.

  3. Strengthening MIGA's partnerships with other development organizations.

  4. All of the above


Correct Option: D
Explanation:

MIGA's future priorities include expanding its coverage to new countries and sectors, developing new products and services to meet the changing needs of investors, and strengthening its partnerships with other development organizations.

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