Which of the following does the International Monetary Fund (IMF) do in order to achieve its goals?
A) It facilitates a smooth system of international payments.
B) It eliminates trade barriers and investment restrictions.
C) It enforces trade agreements across participating countries.
D) It reduces or eliminates tariffs, allowing for a free flow of goods among nations.

Question

Quizplus · Accepted Answer

The IMF's main goal is to promote international monetary cooperation and facilitate a smooth system of international payments. To achieve this, it provides loans to member countries experiencing balance of payments difficulties, offers policy advice and technical assistance, and conducts economic research.

B, C, and D are incorrect because they are not primary functions of the IMF. While the IMF may advocate for reducing trade barriers and tariffs, enforcing trade agreements and eliminating investment restrictions are the responsibilities of organizations such as the World Trade Organization.

Which of the Following Does the International Monetary Fund (IMF)