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International Monetary Fund helps India with
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- short term capital to hide over any temporary difficulty in Balance of Payments
- long term capital for purposes of reconstruction and development
- medium-term capital to build up infrastructure
- grants at subsidised rates to stimulate private investment
Correct Option: B
IMF and World Bank are Bretton Wood Twins. Both the institutions were established to promote international economic cooperation but a basic difference is found in the nature of economic assistance given by these two institutions. World Bank provides long term loans for balanced economic development, while IMF provides short-term loans to member countries for eliminating BOP disequilibrium. Both these institutions are complementary to each other.
