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In Its Lending to Member Countries, the International Monetary Fund

Question 18

Multiple Choice

In its lending to member countries, the International Monetary Fund (IMF)


A) concentrates on long-term development loans and does not engage in short-term Balance-of-payments loans.
B) can lend to a country, at a maximum, only 25 percent of the value of that country's "quota" in the IMF.
C) lends whatever amounts member countries may wish to borrow, and at a zero interest Rate and no service charge on all loans.
D) may increase the difficulty of obtaining loans and may insist on internal policy Changes by borrowing countries as the borrowers ask for additional loans.

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