When a deficit nation borrows from the International Monetary Fund,it purchases with its currency the foreign currency required to help finance the payments deficit.

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This statement is true. When a deficit nation borrows from the IMF, it typically borrows in a foreign currency (such as US dollars). The nation will use its own currency to purchase the necessary amount of foreign currency to help finance its payments deficit. This can help the nation strengthen its balance of payments and stabilize its currency.

When a Deficit Nation Borrows from the International Monetary Fund,it