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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:
Explanation
The International Monetary Fund (IMF) is a specialized agency of the United Nations [5]. It was conceived in July 1944 during the United Nations Monetary and Financial Conference held at Bretton Woods, New Hampshire [3]. The primary purpose of its founding was to secure international monetary cooperation and build a framework for post-war economic stability [4]. The IMF's core objectives include stabilizing currency exchange rates and expanding international liquidity to help member countries manage balance of payments (BOP) difficulties [4]. Historically, it managed the par value system where currencies were pegged to the U.S. dollar, which was linked to gold [2]. By providing short-term financial assistance and acting as a forum for consultation, the IMF ensures confidence in the international monetary system and facilitates the balanced growth of international trade [2].
Sources
- [5] https://en.wikipedia.org/wiki/International_Monetary_Fund
- [1] India and the Contemporary World – II. History-Class X . NCERT(Revised ed 2025) > Chapter 3: The Making of a Global World > 4.1 Post-war Settlement and the Bretton Woods Institutions > p. 75
- [3] https://2001-2009.state.gov/r/pa/ho/time/wwii/98681.htm
- [2] https://www.congress.gov/crs_external_products/R/PDF/R42019/R42019.12.pdf
- [4] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > Transformative Carbon Asset Facility (TCAF) > p. 528