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  1. Home
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International Relations·Easy

Consider the following statements with respect to the functions of the International Monetary Fund (IMF): 1. The IMF lends to its member countries only. 2. The IMF primarily focuses on the development activities in the member countries. 3. The IMF has a component for poverty eradication in the developing countries. Which of the statements given above is/are correct?

Consider the following statements with respect to the functions of the International Monetary Fund (IMF):

1. The IMF lends to its member countries only.

2. The IMF primarily focuses on the development activities in the member countries.

3. The IMF has a component for poverty eradication in the developing countries.

Which of the statements given above is/are correct?

Options

  1. a.

    1 only

  2. b.

    1 and 3 only

    Correct answer
  3. c.

    3 only

  4. d.

    1, 2 and 3

Explanation

• The Indian Monetary Fund (IMF) primarily lends to the member countries towards economic stability. In that, it provides support for the Balance of Payments needs. On the other hand, the World Bank is a development bank.

• The IMF also has a component of concessional loans to help fight poverty in the developing countries.

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