Question

What is the International Monetary Fund and what are its three main functions. Is the IMF functioning according to its charter?

Answer 1

What is international monetary fund?

International monetary fund is an organisation which promotes financial stability at international level and it also promotes monetary cooperation. It is an organisation which includes 189 countries.

Three main functions on IMF -

1.It keeps the record of economic development at national , regional and global level and then gives its advice to the member countries about the financial policies

2. It main functions is to reduce the poverty and increase international trade between the member countries.

3. It also lend money to its members countries to implement their policies.

Is the IMF functioning according to its charter?

Yes IMF is regularly keeping track records at international level so as to achieve its goals. It always aims to eradicate poverty for which they are regularly giving proper and timely advice to its members countries and even they are providing proper funding to assist them.

Pros of IMF-

1. IT aims to eradicate proverty and implement the international trade between the countries

2. It gives financial advice to all the member countries so that proper policies can be made.

Cons of IMF-

1.They charge very high interest rates for the advances given to the member countries like in the year 1982 they charges 6.2 % interest for ordinary resources