Many in the Sponeto government agree that increasing the money supply to the nation's economy would be of significant help to the country. The national bank's reserve, however, is short on the funds needed, and suggests asking for them from the International Monetary Fund (IMF). Which of the following, if True, would strengthen the case for this course of action?
A) The IMF has been known to force donor countries to drop tariffs put in place to protect domestic industries.
B) The IMF has been known to force donor countries to privatize national companies.
C) The IMF contributes money as well as financial advice to help countries with economies suffering from balance-of-payment problems.
D) IMF loans typically come with many conditions attached that may result in increased poverty in the donor country.
E) A number of developing countries have suffered financial disasters from following IMF advice.

Question

Quizplus · Accepted Answer

C) This describes Sponeto's economic situation, and indicates that the IMF's mission would be well suited to its needs. Tariffs (Choice A) and nationalized companies (Choice B) may or may not represent long-term drags on Sponeto's economy, but it's a disadvantage of taking IMF funds if the result is loss of national control over such basic economic decisions. Choices D and E also describe potential, if uncommon, disadvantages to accepting funds from the IMF.

Many in the Sponeto Government Agree That Increasing the Money