Which term best describes the process in which the International Monetary Fund provides loans to countries facing balance-of-payments difficulties provided that they initiate programs holding promise of correcting these difficulties?

Question

Quizplus · Accepted Answer

The term that best describes the process in which the International Monetary Fund provides loans to countries facing balance-of-payments difficulties provided that they initiate programs holding promise of correcting these difficulties is "conditionality". Conditionality refers to the terms and conditions attached to the loans provided by the IMF, which typically require the recipient country to undertake certain policy reforms and adjustments in order to address the underlying economic problems that led to the balance-of-payments difficulties in the first place.

Which Term Best Describes the Process in Which the International