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IMF - International organisations and arrangements, International Business Video Lecture | International Business - B Com
FAQs on IMF - International organisations and arrangements, International Business Video Lecture - International Business - B Com
| 1. What is the role of the International Monetary Fund (IMF)? |  |
Ans. The International Monetary Fund (IMF) is an international organization that aims to promote global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
| 2. How does the IMF provide financial assistance to countries? | |
Ans. The IMF provides financial assistance to countries facing economic difficulties through various lending programs. These programs are designed to help countries stabilize their economies, implement necessary reforms, and restore confidence in their financial systems. The assistance is typically provided in the form of loans with conditions attached, known as "conditional lending."
| 3. What are the benefits of being a member of the IMF? | |
Ans. Being a member of the IMF provides several benefits. Firstly, it gives countries access to financial assistance in times of economic crises. Secondly, membership allows countries to participate in decision-making processes that shape the global economic agenda. Additionally, the IMF provides technical assistance and policy advice to member countries, helping them strengthen their economic institutions and policies.
| 4. How does the IMF promote international trade? | |
Ans. The IMF promotes international trade by providing a stable global monetary and financial system. It encourages countries to adopt sound economic policies, such as maintaining exchange rate stability and liberalizing trade regimes. The IMF also works to resolve balance of payments problems, which can hinder international trade, through its financial assistance programs.
| 5. How does the IMF contribute to poverty reduction? | |
Ans. The IMF contributes to poverty reduction through its lending programs and policy advice. By providing financial assistance to countries in need, the IMF helps stabilize their economies, promote growth, and create jobs. The IMF also encourages countries to implement social safety nets and targeted poverty reduction measures as part of their policy reforms. Additionally, the IMF supports capacity development in member countries to help them design and implement effective poverty reduction strategies.
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