Two major features of the International Monetary Fund (IMF)Articles of Agreement fostered flexibility within the monetary system.These features included IMF lending facilities and:
A) IMF export assistance
B) fixed parities
C) a return to the gold standard
D) adjustable parities
E) externally imposed monetary discipline

Question

Quizplus · Accepted Answer

The IMF lending facilities provided member countries with the ability to borrow foreign currency reserves to stabilize their economies and balance of payments. However, to further promote flexibility in the monetary system, the IMF also introduced adjustable parities, which allowed member countries to adjust the value of their currencies in accordance with changing economic conditions. This allowed for greater flexibility in maintaining stable exchange rates and promoting international trade. Therefore, the correct answer is D - adjustable parities.

Two Major Features of the International Monetary Fund (IMF)Articles of Agreement