_________________ is the set of limitations on the range of allowable actions of the government of a country that is a recipient of IMF loans.
A) Regulatory arbitrage
B) Capital market liberalization
C) Conditionality
D) Economic fundamentals

Question

Quizplus · Accepted Answer

Conditionality refers to the conditions that the IMF attaches to its loans, including limitations on the range of allowable actions of the government of the borrowing country. These conditions are aimed at ensuring that the borrower implements economic policies that are consistent with the IMF's objectives of promoting international monetary cooperation, facilitating international trade, promoting high levels of employment and sustainable economic growth, and reducing poverty. Regulatory arbitrage refers to the practice of taking advantage of differences in regulatory requirements between different jurisdictions to achieve a competitive advantage. Capital market liberalization refers to the process of removing restrictions on capital flows between countries. Economic fundamentals refer to the underlying economic factors that determine the growth and stability of an economy, such as inflation, growth rates, and fiscal and monetary policies.

_________________ Is the Set of Limitations on the Range of Allowable