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How Does the International Monetary Fund (IMF)provide Loans to Deficit-Laden

Question 70

Multiple Choice

How does the International Monetary Fund (IMF) provide loans to deficit-laden countries?


A) It prints the required currencies, thereby increasing money supply in those countries.
B) It acts as a market, buying goods from these countries and selling it to developed countries.
C) A pool of gold and currencies contributed by its members provides the resources for the lending operations.
D) The World Bank lends the required amount to the IMF at a low interest rate.
E) It collects money from those countries that wish to devaluate their currencies.

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