Question

What is the main role of the International Monetary Fund (IMF)

		To be a forum for trade and liberalization
		To ensure a stable exchange rate regime and provide emergency assistance to countries facing crisis in balance of payments
		To assist countries in development
		To facilitate private investment around the world

Answer 1

The answer is as follows:

The main role Fund (IMF) is : regime and provide emergency to countries payments. To ensure a stable exchange rate facing crisis in balance of Hence, the above statement is correct Explanation : • To be a forum for trade and liberalization is not the main role of IMF. The World Trade Organization (WTO) oversees the global trade rules WTO has lowered trade barriers among countries, hence seeing the simulation of free trade and decline in trade disputes among nations . the member 1 To ensure a stable exchange rate regime and provide emergency assistance to countries kecing crisit in balonce ob poyments is the main role of IMP. IMF promotes

avoid exchonge stability to maintain exderly exchange anangemente, among members so as to competitive exchange depreciation. IMF seeks to maintain orderly system of payments and receipts between nations? an • To assist countries in development is not the main role of IMF. The primary purpose of World Bank is of financing economic development. The central Purpose o World Bank is to promote economic and social financing, advice, research to developing nations to aid their economic development of progress, provide • To focilitate private investment Ground the world is not the main role of IMF. Private investments are generally through Foreign Institutional Investors (FI1s), foreign Direct Investments (FDIS). The World Bank Group offers multiple channels and instruments to

encourage the private sector to seek opportunities and engage in developing countries.