IMF Flashcards
When was the International Monetary Fund (IMF) established?
The IMF was established following the Bretton Woods Conference in July 1944.
Who were the key figures in the establishment of the IMF?
Harry Dexter White and John Maynard Keynes.
What was the vision of Harry Dexter White for the IMF?
He envisioned the IMF as a debt repayment institution.
What did John Maynard Keynes see the IMF as?
A cooperative fund for economic stability.
When did the IMF officially begin its operations?
The IMF officially began on December 27, 1945.
What are the main goals of the IMF?
Promoting Global Economic Stability and Growth, Providing Financial Assistance, Conducting Economic Assessments and Providing Policy Recommendations.
What is the regulatory function of the IMF?
It acts as a regulatory body focusing on administering a code of conduct for exchange rate policies and restrictions on payments for current account transactions.
What does the financial function of the IMF entail?
Providing financial support and resources to member countries to meet short-term and medium-term balance of payments disequilibrium.
What is the consultative function of the IMF?
It serves as a center for international cooperation and provides counsel and technical assistance to member countries.
What system did the IMF originally use to stabilize currency exchange rates?
A pegged system where each country’s currency value was set relative to the U.S. dollar.
What significant change occurred in 1971 regarding the IMF’s operations?
The U.S. ended the gold standard, allowing countries to choose their own exchange rate systems.
How does the IMF help countries facing balance-of-payments deficits?
By providing loans in foreign currencies.
What are Special Drawing Rights (SDRs)?
An international reserve asset based on major currencies (USD, EUR, JPY, GBP).
What is the repayment period for loans provided by the IMF?
Borrowers must repay within 3–5 years.
What are ‘Article IV Consultations’?
Yearly consultations to assess a country’s economic health and identify risks.
What is one key achievement of the IMF?
Establishment of a Monetary Reserve Fund.
How has the IMF contributed to monetary discipline among member countries?
By providing assistance only to countries making efforts to solve their problems.
What check does the IMF provide on competitive currency devaluation?
Member countries cannot devalue their currency without IMF permission.
What type of technical assistance does the IMF provide to its members?
Through staff missions, study reports, and publications.
What is the primary mission of the IMF?
To reduce poverty, encourage trade, and promote economic stability and growth.
Fill in the blank: The IMF provides financial assistance to members with _______.
balance of payment problems.
True or False: The IMF only provides financial assistance without any conditions.
False.
