Home » General Knowledge » International Organisations » Question
  1. The capital of IMF is made up by contribution of the
    1. credit
    2. deficit financing
    3. member nations
    4. borrowings
Correct Option: C

Countries contribute money to a pool through a quota system from which countries with payment imbalances can borrow funds temporarily. The IMF’s membership is divided along income lines: certain countries provide the financial resources while others use these resources. Both developed country “creditors” and developing country “borrowers” are members of the IMF. The developed countries provide the financial resources but rarely enter into IMF loan agreements; they are the creditors.



Your comments will be displayed only after manual approval.