Question

Which of the following statements regarding 'International Monetary Fund' is correct?
1. It can provide loans to any country.
2. It can only provide loans to developed countries.
3. It provides loans only to member countries.
4. It provides loans to the central bank of a country. 

Answer 1

Correct Answer - Option 3 : It provides loans only to member countries.

The correct answer is It provides loans only to member countries.

• The International Monetary Fund (IMF) is an organization of 190 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
• Created in 1945, the IMF is governed by and accountable to the 190 countries that make up its near-global membership.

• The IMF's primary purpose is to ensure the stability of the international monetary system.
• The system of exchange rates and international payments enables countries (and their citizens) to transact with each other.
• The Fund's mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global stability.