Podcast
Questions and Answers
When was the International Monetary Fund (IMF) established?
When was the International Monetary Fund (IMF) established?
- 2012
- After the Great Depression
- 1930s
- 1944 (correct)
What is the primary purpose of the International Monetary Fund (IMF)?
What is the primary purpose of the International Monetary Fund (IMF)?
- To facilitate international trade and nothing else
- To reduce poverty around the world
- To promote high employment only
- To foster global monetary cooperation (correct)
How many countries are members of the International Monetary Fund (IMF)?
How many countries are members of the International Monetary Fund (IMF)?
- 44
- 190 (correct)
- 150
- 193
What does the IMF do to ensure the stability of the international monetary system?
What does the IMF do to ensure the stability of the international monetary system?
What was added to the IMF's mandate in 2012?
What was added to the IMF's mandate in 2012?
How does the IMF assist its member countries?
How does the IMF assist its member countries?
What is one of the main objectives of the International Monetary Fund (IMF)?
What is one of the main objectives of the International Monetary Fund (IMF)?
How many members does the International Monetary Fund (IMF) have today?
How many members does the International Monetary Fund (IMF) have today?
What is the primary aim of IMF lending to countries?
What is the primary aim of IMF lending to countries?
What may lead a country to seek financial assistance from the IMF?
What may lead a country to seek financial assistance from the IMF?
Which of the following is not a main objective of the International Monetary Fund (IMF)?
Which of the following is not a main objective of the International Monetary Fund (IMF)?
What was the initial goal of the International Monetary Fund (IMF) when it was developed?
What was the initial goal of the International Monetary Fund (IMF) when it was developed?
What circumstance may lead a country to need financial assistance from the IMF?
What circumstance may lead a country to need financial assistance from the IMF?
What is one way in which IMF lending can help a country facing economic challenges?
What is one way in which IMF lending can help a country facing economic challenges?
What is NOT a goal of IMF lending to countries?
What is NOT a goal of IMF lending to countries?
Why might a country facing severe capital outflows seek financial assistance from the IMF?
Why might a country facing severe capital outflows seek financial assistance from the IMF?
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Study Notes
International Monetary Fund (IMF)
- Established in 1944
- Primary purpose: to promote global monetary cooperation, exchange rate stability, and provide temporary financial assistance to countries facing economic difficulties
Membership and Objectives
- 189 countries are members of the IMF
- One of the main objectives: to promote international monetary cooperation and exchange rate stability
- Main objective: to provide temporary financial assistance to countries facing economic difficulties
Ensuring Stability
- Ensures stability of the international monetary system by:
- Promoting international monetary cooperation
- Encouraging exchange rate stability
- Providing temporary financial assistance to countries facing economic difficulties
Mandate and Lending
- Added to the IMF's mandate in 2012: macroprudential policy
- Assists member countries by providing temporary financial assistance to countries facing economic difficulties
- Primary aim of IMF lending: to help countries facing economic difficulties to restore macroeconomic stability and reduce poverty
- May lead a country to seek financial assistance: balance of payments problems, international reserves depletion, or a loss of confidence in the economy
- IMF lending can help a country facing economic challenges by:
- Providing temporary financing to address balance of payments problems
- Restoring macroeconomic stability
- Reducing poverty
- NOT a goal of IMF lending: to provide permanent financial assistance to countries
Initial Goal and Circumstances
- Initial goal when developed: to promote international monetary cooperation and exchange rate stability
- Circumstances that may lead a country to need financial assistance:
- Severe capital outflows
- Balance of payments problems
- International reserves depletion
- Loss of confidence in the economy
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