Question
With reference to the IMF, consider the following
statements:        I.           The IMF is an international organization that promotes global economic growth and financial stability.      II.           It was set up in 1945 out of the Paris Treaty conference.    III.           It evolved to be a lender of last resort to governments of countries that had to deal with severe currency crises. Which of the statements given above is/are not correct?Solution
The IMF is an international organization that promotes global economic growth and financial stability, encourages international trade, and reduces poverty. It was set up in 1945 out of the Bretton Woods conference. Originally, the primary goal of IMF was to bring about international economic coordination to prevent competing currency devaluation by countries trying to promote their own exports. Eventually, it evolved to be a lender of last resort to governments of countries that had to deal with severe currency crises.
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