Which of the following are the main objectives of establishment of International Monetary Fund (IMF)?…
According to the Articles of Agreement of the International Monetary Fund (IMF), its primary objectives include regulating exchange rates and enforcing rules (C), promoting…
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Which of the following are the main objectives of establishment of International Monetary Fund (IMF)?
A. To provide long-term funds at concession rates to the poorest member countries.
B. To promote the development of Private enterprises in member countries.
C. To regulate the exchange rates and enforce the rules.
D. To promote exchange stability , maintaining orderly exchange arrangements and avoiding competitive exchange devaluation.
E. To assist in establishment of a multilateral system of payments in respect of current transaction between members.
Answer and explanation
Correct answer D
According to the Articles of Agreement of the International Monetary Fund (IMF), its primary objectives include regulating exchange rates and enforcing rules (C), promoting exchange stability and avoiding competitive currency devaluations (D), and assisting in establishing a multilateral system of payments for current transactions (E). Providing concessional long-term development loans to the poorest countries (A) is the role of the World Bank's IDA, and promoting private enterprises (B) is the role of the IFC.
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