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