ECONOMICS (CBSE/UGC NET)

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ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The World Bank and the International Monetary Fund (IMF) aim to ensure that the global financial system is well regulated and resilient to crises. Through the Financial Sector Assessment Program (FSAP), the IMF and World Bank evaluate the strengths and weaknesses of a country’s financial markets and recommend policies to help reduce the chance of a future financial crisis.
A
Yes, I understand this from the notes
B
No, I don’t understand this from the notes
C
No, I don’t understand this, as I have not read the notes
D
None of the above
Explanation: 

Detailed explanation-1: -Their approaches to achieving this shared goal are complementary: the IMF focuses on macroeconomic and financial stability while the World Bank concentrates on long-term economic development and poverty reduction.

Detailed explanation-2: -The main difference between the International Monetary Fund (IMF) and the World Bank lies in their respective purposes and functions. The IMF oversees the stability of the world’s monetary system, while the World Bank’s goal is to reduce poverty by offering assistance to middle-income and low-income countries.

Detailed explanation-3: -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-4: -Instead, the IMF provides financial support to countries hit by crises to create breathing room as they implement policies that restore economic stability and growth. It also provides precautionary financing to help prevent crises. IMF lending is continuously refined to meet countries’ changing needs.

There is 1 question to complete.
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