ECONOMICS
ECONOMIC INSTITUTIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To ensure balanced international trade
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To ensure exchange rate stability
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To promote international monetary cooperation
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To provide loan to private sectors
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Detailed explanation-1: -To promote international monetary cooperation is not an objective of IMF.
Detailed explanation-2: -3. Which of the following statement is NOT correct regarding the membership of the IMF? Explanation: All member countries of the IMF are not sovereign states therefore all “member countries” of the IMF are not members of the United Nations.
Detailed explanation-3: -The IMF has three critical missions: furthering international monetary cooperation, encouraging the expansion of trade and economic growth, and discouraging policies that would harm prosperity.
Detailed explanation-4: -The IMF’s primary objective is the overall promotion of world trade. The IMF meets its primary objective by overseeing the balance of payments, acting as a forum of world negotiation, and regulating world exchange rates.
Detailed explanation-5: -The IMF only lends to governments, not the private sector or civil society, and all IMF financing is fungible – meaning the loan itself is not tied to any specific project or expenditure – unlike loans by development banks which are often used to support specific projects.