The correct answer is: C. 1, 2, 4 and 5
The International Monetary Fund (IMF) is an international financial institution that was founded in 1945. The IMF’s stated goal is to promote international monetary cooperation, exchange stability, and orderly exchange arrangements. It also works to foster economic growth and high levels of employment.
The IMF’s main functions are to:
- Provide loans to countries experiencing balance of payments difficulties.
- Promote exchange rate stability.
- Facilitate international trade.
- Provide technical assistance to member countries.
The IMF’s resources are derived from the contributions of its member countries. The size of each country’s contribution is based on its economic size.
The IMF is governed by a Board of Governors, which is made up of one governor from each member country. The Board of Governors meets once a year. The day-to-day operations of the IMF are carried out by the Executive Board, which is made up of 24 Executive Directors. The Executive Directors are appointed by the member countries.
The IMF has been criticized for its role in the 1980s debt crisis, when it imposed austerity measures on many developing countries. The IMF has also been criticized for its role in the 2008 financial crisis, when it bailed out large banks.
Despite these criticisms, the IMF remains an important institution in the global economy. It provides loans to countries in need, and it helps to promote international monetary cooperation.
The following are the important objectives of IMF:
- To promote exchange rate stability.
- To create standby reserves.
- To establish a multilateral system of payments.
- To maintain orderly exchange rate stability.
The IMF does not have the objective of creating employment.