Theory question 110
International Economic OrganisationsSection B: answer three questions only from this section.
Describe the functions of the International Monetary Fund (IMF).
Show the model answer
Model answer
Gives short-term loans to members with temporary balance of payments deficits
Promotes international monetary co-operation
Promotes exchange rate stability and orderly exchange arrangements
Helps remove exchange controls and encourages convertibility of currencies
Promotes the growth of international trade
Gives technical assistance and advice on economic policy to members
Provides a forum for consultation on international monetary problems
Manages Special Drawing Rights (SDRs) to increase international liquidity
Explanation
Describe at least five functions.