IMF Flashcards
What is the International Monetary Fund (IMF)?
An international organization established in 1944 to promote global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty worldwide.
When was the IMF established?
The IMF was established in July 1944 at the Bretton Woods Conference and began operations on December 27, 1945.
Where is the IMF headquartered?
The IMF is headquartered in Washington, D.C., United States.
How many member countries does the IMF have?
As of 2025, the IMF has 191 member countries.
What are the main functions of the IMF?
- Surveillance: Monitoring global economic and financial developments and providing policy advice to member countries. | 2. Financial Assistance: Providing loans to member countries facing balance of payments problems. | 3. Technical Assistance and Training: Offering guidance and training to help countries improve economic management.
What is IMF surveillance?
The process by which the IMF monitors the international monetary system and the economic and financial policies of its member countries, providing analysis and advice to promote stability and growth.
What types of financial assistance does the IMF provide?
The IMF offers various lending programs, including: | - Stand-By Arrangements (SBA): Short-term financial assistance for balance of payments needs. | - Extended Fund Facility (EFF): Medium-term assistance for structural economic issues. | - Rapid Financing Instrument (RFI): Quick financial support for urgent needs, such as natural disasters.
What is the IMF’s role in technical assistance?
The IMF provides expertise and training to member countries in areas such as public finance management, monetary policy, exchange rate policies, financial sector supervision, and economic statistics.
How is the IMF governed?
The IMF is governed by its Board of Governors, comprising one governor from each member country, typically the country’s finance minister or central bank governor. The day-to-day operations are overseen by the Executive Board, consisting of 24 Directors representing member countries or groups of countries.
What are Special Drawing Rights (SDRs)?
SDRs are an international reserve asset created by the IMF to supplement its member countries’ official reserves. The value of an SDR is based on a basket of major international currencies.
How does the IMF support low-income countries?
The IMF provides concessional financial assistance to low-income countries through programs like the Poverty Reduction and Growth Trust (PRGT), offering loans at low or zero interest rates.
What is the difference between the IMF and the World Bank?
While both are international financial institutions, the IMF focuses on ensuring global monetary cooperation and financial stability, whereas the World Bank provides long-term funding for development projects aimed at reducing poverty and supporting development.
How does a country become a member of the IMF?
A country applies for membership and, upon approval, agrees to abide by the IMF’s Articles of Agreement and contribute a quota subscription, reflecting its relative size in the global economy.
What are IMF quotas?
Quotas are financial contributions made by member countries, determining their voting power and access to financial resources from the IMF.
How does the IMF monitor exchange rates?
The IMF monitors global exchange rate policies to ensure stability and avoid manipulative practices, providing analysis and recommendations to member countries.
What is the IMF’s role during financial crises?
The IMF provides emergency financial assistance and policy advice to countries facing economic crises to restore stability and growth.
How does the IMF promote international trade?
By providing financial stability and policy advice, the IMF helps create an environment conducive to the expansion of international trade.
What is the IMF’s Independent Evaluation Office (IEO)?
The IEO assesses the IMF’s policies and activities to enhance transparency and accountability within the organization.
How can the public access IMF publications and data?
The IMF publishes reports, research, and data on its official website, offering resources like the World Economic Outlook and Global Financial Stability Report.
