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The International Monetary Fund Offers Loans on the Principle of Conditionality

Question 33

Multiple Choice

The International Monetary Fund offers loans on the principle of conditionality, which means which of the following?


A) The state receiving the loan cannot receive more loans in the future.
B) The state receiving the loan must pay the loan back.
C) The state receiving the loan must adjust its domestic policies to fix balance-of-payment imbalances.
D) The state receiving the loan must offer other states economic concessions, like favorable trade or investment deals.

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