Question:
What is the main role of the International Monetary Fund (IMF)?
(1) Ensuring a stable exchange rate regime and provide emergency financial assistance to countries facing crises in balance of payments
(2) Providing long term capital investment for assuring balance of payments equilibrium and balanced development of international trade
(3) Reducing poverty by lending money to member countries to improve the standard of living of their people
(4) Removing barriers for free flow of foreign direct investment
(5) Providing long-term finance to member countries for economic development and reconstruction.
Correct Answer:
(1)
Answer Explanation:
The IMF primarily oversees global financial stability. It provides short-to-medium-term financial assistance and policy advice to countries experiencing severe balance of payments deficits and foreign exchange shortages. (Long-term development is the role of the World Bank).
Topic: Global Economy Year: 2022
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