To maintain fixed exchange rates when countries had balance of payments deficits and were losing international reserves,the ________ would loan ________ countries international reserves contributed by other members.

Question

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The International Monetary Fund (IMF) is responsible for maintaining fixed exchange rates and providing loans to countries experiencing balance of payments deficits. These loans are made using international reserves contributed by other member countries to help safeguard the stability of the global financial system. The other options, World Bank and surplus countries, do not have a direct role in maintaining fixed exchange rates or providing loans for balance of payments deficits.

To Maintain Fixed Exchange Rates When Countries Had Balance of Payments