Question:
In which of the following circumstances could the International Monetary Fund (IMF) be called into assist a country?
(1) A trade dispute
(2) A Balance of Payments crisis
(3) A foreign investment dispute
(4) An infrastructure funding shortage
(5) An economic recession
Correct Answer:
(2)
Answer Explanation:
The primary mandate of the International Monetary Fund (IMF) is to ensure the stability of the international monetary system. It specifically acts as a lender of last resort for member countries experiencing severe Balance of Payments (BOP) crises and critical foreign exchange shortages.
Topic: Global Economy Year: 2019
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