Question

What is the full form of IMF?
1. International monetary fund
2. International money fund
3. Internal monetary foundation
4. International monetary foundation

Answer 1

Hint: IMF stands for international monetary fund. It is an organization of $186$ countries. It works to promote the development of global growth and economic stability. Main aim of the IMF is to reduce poverty. The IMF was conceived in July $1944$ and officially created in $1945$ . Functions of IMF are surveillance, financing or lending, technical services.

Complete answer:
History of IMF:
1. Post $1930$ era was impacted by the great depression and second world war. During this great depression, the countries were trying to strengthen their falling economies by sharply raising barriers to foreign trades, devaluing their currencies, curtailing their citizen’s freedom to hold foreign exchanges.
2. Countries affected by the second world war desperately required economic reconstruction, economic development.
3. In Bretton woods agreement, representatives of $45$ countries met in Bretton woods town. It is located in the northeastern United states, agreed on a framework for international economic cooperation.
4. IMF came into formal existence in December $1945$ , when its first $29$ member countries signed its articles of agreement.
5.. It started operation in March $1947$, and France became the first country to borrow from the IMF.

Objectives of IMF:
1.To encourage the international monetary cooperation
2. To make easier for the expansion and balanced growth of international trade
3. To encourage exchange rate stability
4. To establish a multilateral system of payments

Functions of IMF
1. Surveillance- keeping track of global economy and economies of member country
2.Lending- lending to countries with balance of payment difficulties, financial assistance to countries to meet international payments
3. Technical services- to assist mainly low and middle income, countries in effectively managing their economies.

Thus the option (A) is correct

Note: Headquarters of IMF is Washington, D.C. staff of IMF are approximately $2,470$ from $141$ countries. Total quotas is $383$ billion US dollars. Biggest borrowers are Greece, Portugal, Ireland. The IMF board is counseled by the international monetary and financial committee (IMFC) and development committee.