Question

Answer the following questions.

What is IMF? Discuss its various objectives and functions.

Answer 1

International Monetary Fund (IMF) is an organisation that was established at a United Nations conference in Bretton Woods, with the main objective of building up economic cooperation among the various countries. It is also known as ‘Fund’ and comprises 187 member countries with a staff of 2,500 people from 160 countries. The biggest borrowers of IMF constitute Greece, Portugal and Ireland (as on 5/25/11). Some of the functions performed by IMF are:

1. It increases monetary cooperation among the nations.
2. It secures financial stability of the nations.
3. IMF promotes international trade between countries.
4. It takes initiatives to generate employment in member countries.
5. It works to reduce poverty all around the world.

Some of the primary objectives of the IMF are:

1. Promoting exchange rate stability
2. Providing assistance in the multilateral system of payments
3. Enhancing monetary cooperation