The International Monetary Fund

Question

Quizplus · Accepted Answer

The International Monetary Fund (IMF) provides loans to member countries in need of financial assistance, and its primary purpose is to ensure the stability of the international monetary system. The IMF's loans are usually short-term and are intended to help countries address balance of payment problems and restore economic stability. Therefore, option A is the best choice.

Option B is incorrect because the IMF doesn't set a single monetary instrument that governs international monetary exchange. Rather, it coordinates international monetary cooperation and provides advice and assistance on monetary policy and exchange rate issues.

Option C is also incorrect because the IMF has the ability to provide loans to developing countries, although such loans may be subject to certain conditions and eligibility criteria.

Option D is misleading because while the IMF does provide long-term loans in certain cases, such loans are typically intended to support economic development and structural reforms, not to provide ongoing financial support.