Question

Under the Bretton Woods​ Agreement, the goal of the IMF was to

A.

lend to countries experiencing balance of payment deficits.

B.

help less developed countries advertise their goods in the developed countries.

C.

finance international transactions in gold.

D.

provide oversight to the functioning of central banks in the member countries.

Answer 1

The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., consisting of 189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. Formed in 1944 at the Bretton Woods Conference primarily by the ideas of Harry Dexter White and John Maynard Keynes, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system. It now plays a central role in the management of balance of payments difficulties and international financial crises. Countries contribute funds to a pool through a quota system from which countries experiencing balance of payments problems can borrow money.

The organisation's objectives stated in the Articles of Agreement are: to promote international monetary co-operation, international trade, high employment, exchange-rate stability, sustainable economic growth, and making resources available to member countries in financial difficulty.

Under the Bretton Woods​ Agreement, the goal of the IMF was to lend to countries experiencing balance of payment deficits.

(Answer is A)