Question

Which of the following is not a function of IMF (a) It provides medium term and long term loans to its member countries (b) It provides machinery for the orderly adjustment of exchanges rates (c) It is a sort of lending institution in foreign exchange.. (d) It monitors economic and financial development of the member countries

Answer 1

Answer:

It provides medium term and long term loans to its member countries

Answer 2

Option a is the correct answer.

'It provides medium term and long term loans to its member countries' is not a function of IMF.

IMF has three main functions

1. Regulatory functions -  It provides machinery for the orderly adjustment of exchanges rates. It manages exchange rate policies and restrictions on payments for current account transactions.
2. Consultative function- It monitors economic and financial development of the member countries and gives technical advice.
3. Financial function - It provides short term and medium term finance to correct balance of payment disequilibrium.