Which of the following is true of IMF lending facilities?
A)IMF supervision of a country's macroeconomic policies was not envisaged whatever be the extent of drawings.
B)Most IMF loans were for periods of 10-15 years to help members tide over balance-of-payments deficits.
C)Member countries were not allowed to borrow any amount from the IMF without adhering to any specific agreements.
D)IMF funds were meant to buy time for countries to bring down their inflation rates and reduce their balance-of-payments deficits.

Question

Quizplus · Accepted Answer

By providing deficit-laden countries with short-term foreign currency loans,IMF funds would buy time for countries to bring down their inflation rates and reduce their balance-of-payments deficits.Countries were to be allowed to borrow a limited amount without adhering to any specific agreements.However,extensive drawings would require a country to agree to increasingly stringent IMF supervision of its macroeconomic policies.

Which of the Following Is True of IMF Lending Facilities