Regarding the International Monetary Fund, which one of the following statements is correct?
[UPSC Civil Services Exam – 2011 Prelims]
(a) It can grant loans to any country
(b) It can grant loans to only developed countries
(c) It grants loans to only member countries
(d) It can grant loans to the central bank of a country
International Monetary Fund (IMF):
The formation of the IMF was initiated in 1944 at the Bretton Woods Conference.
IMF came into operation on 27th December 1945 and is today an international organization that consists of 189 member countries.
Objectives of the IMF:
- To improve and promote global monetary cooperation of the world.
- To secure financial stability by eliminating or minimizing the exchange rate stability.
- To facilitate a balanced international trade.
- To promote high employment through economic assistance and sustainable economic growth.
- To reduce poverty around the world.