Question

The International Monetary Fund:

is limited in its ability to loan money to developing countries.
sets a single monetary instrument that governs international monetary exchange.
was dismantled in 1965.
was set up to provide for long-term money flow to developing countries.
provides loans and facilitates a short flow of money to countries in need.

Answer 1

Answer: Option (e) is correct.

Step-by-step explanation:

Correct option: Provides loans and facilitates a short flow of money to countries in need.

The international monetary fund (IMF) was established to help the member countries with balance of payment deficit, to promote international trade between member nations, provide loans, to improve country's economic growth, helps in a creation of new employment opportunities.

There are two main sources of international monetary fund; Quotas and loans.

Quotas are the funds that are collected from the member countries of IMF. It normally generate most of the IMF funds.