Q. Which of the following is/are the instruments/methods of International Monetary Fund to raise money?
1. Multinational corporations.
2. Quotas.
3. New Arrangements to Borrow (NABs).
Select the correct answer using the codes given below:

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: C

Quotas are the IMF’s main source of financing. Each member of the IMF is assigned a quota, based broadly on its relative position in the world economy. 

  • The New Arrangements to Borrow (NAB) constitutes a second line of defense to supplement IMF resources to forestall or cope with an impairment of the international monetary system. 
  • Bilateral Borrowing Agreements serve as a third line of defense after quotas and the NAB. 

IMF landing

Source: https://www.imf.org/en/About/Factsheets/Where-the-IMF-Gets-Its-Money