Question map
Not attempted Correct Incorrect ★ Bookmarked
Loading…
Q7 (IAS/1994) International Relations & Global Affairs › International Organisations & Groupings › International financial institutions Answer Verified

The main function of the IMF is to

Result
Your answer: —  Â·  Correct: B
Explanation

The IMF’s principal role is to promote international monetary cooperation and to assist member countries facing balance of payments (BOP) difficulties by providing short- and medium‑term financial support and policy advice. Textbooks and official summaries list IMF objectives such as ensuring exchange‑rate stability, facilitating payments transactions, and helping members overcome BOP problems, distinguishing it from the World Bank’s long‑term development lending role [1]. The IMF provides loans to governments to resolve temporary external payment shortfalls and conducts surveillance and policy advice to restore stability, rather than financing specific investment projects in developing countries [2]. Therefore option (2) correctly states the IMF’s main function.

Sources

  1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > 13.14 International Monetary Fund (IMF) and World Bank > p. 396
  2. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Transformative Carbon Asset Facility (TCAF) > p. 528
How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
53%
got it right
✓ Thank you! We'll review this.

SIMILAR QUESTIONS

CDS-II · 2013 · Q60 Relevance score: -1.08

The main functioning of the banking system is to :

CDS-II · 2014 · Q50 Relevance score: -1.83

Which of the following statements about International Monetary Fund (IMF) are correct ? 1. The IMF is a United Nations specialized agency. 2. The IMF was founded at the Bretton Woods Conference in 1944 to secure international monetary cooperation. 3. The objective of the IMF is to stabilize currency exchange rates, and to expand international liquidity (access to hard currencies). Select the correct answer using the code given below:

IAS · 2016 · Q15 Relevance score: -3.51

With reference to the International Monetary and Financial Committee (IMFC), consider the following statements : 1. IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work. 2. The World Bank participates as observer in IMFC's meetings. Which of the statements given above is/are correct?

CDS-II · 2022 · Q30 Relevance score: -4.06

Which one of the following is considered as an agency function of commercial banks in India?

IAS · 2000 · Q10 Relevance score: -4.21

The primary function of the Finance Commission in India is to