Q. With reference to the International Monetary Fund (IMF), consider the following statements:
1.It is an independent international financial institution that cooperates closely with the United Nations.
2.It is regarded as the global lender of last resort to national governments.
3.Special Drawing Right (SDR) is a type of loan provided by the IMF to developing countries.
4.International Financial Review Report is published bi-annually by the IMF to provide economic forecasts.
How many of the statements given above are correct?
Answer: B
Notes:
Explanation –
Statements 1 and 2 are correct. The IMF is a major financial agency that is considered a specialized agency of the United Nations, which means it cooperates closely with the UN but operates independently. The IMF is regarded as the global lender of last resort, providing financial assistance to countries facing balance of payments problems.
Statements 3 and 4 are incorrect. Special Drawing Rights (SDRs) are not loans but rather an international reserve asset created by the IMF to supplement member countries’ foreign exchange reserves. The IMF publishes the World Economic Outlook (WEO) biannually, which provides economic forecasts.
Source: The Hindu
