Q. Which of the following is/are function/s of International Monetary Fund (IMF)?
1.It facilitates international monetary cooperation.
2.It promotes exchange rate stability and orderly exchange arrangements.
3.It provides long term low interest loans for developmental activities in least developed countries.
Choose the correct answer from below given codes:

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: B

Explanation: The main functions of the IMF are as given below:

  1. to facilitate international monetary cooperation;
  2. to promote exchange rate stability and orderly exchange arrangements;
  3. to assist in the establishment of a multilateral system of payments and the elimination of foreign exchange restrictions; and
  4. to assist member countries by temporarily providing financial resources to correct mal-adjustment in their balance of payments (BoPs).

Source: Ramesh Singh