The IMF was intended to limit two kinds of behavior:
A) competitive devaluations and abuse of the stabilization fund.
B) competitive revaluations and exchange restrictions.
C) abuse of the gold standard and conditionality agreements.
D) exchange restrictions and conditionality agreements.
E) competitive devaluations and conditionality agreements.

Question

Quizplus · Accepted Answer

The International Monetary Fund (IMF) was created to oversee the international monetary system and to encourage economic stability and cooperation among its member countries. One of its primary goals was to prevent competitive devaluations, which countries might engage in to gain a trade advantage by making their exports cheaper and imports more expensive. Additionally, the IMF aimed to limit the abuse of the stabilization fund, which was established to provide temporary financial assistance to countries to help them stabilize their economies without resorting to measures that would harm national or international economic prosperity.

The IMF Was Intended to Limit Two Kinds of Behavior