Question

Describe the International Monetary Fund (IMF).

Answer 1

1. The International Monetary Fund was primarily the brainchild of Harry Dexter White and John Maynard Keynes, the famous economist.
2. It was formally organized in 1945 with 29 member countries.
3. Now it has a membership of 189 countries.
4. Its primary objective is to ensure financial stability and development across the world,
5. The main agenda is to promote international monetary co-operation, expansion of international trade, and exchange stability.
6. The Fund lends money from its resources to countries facing balance of payments problems.
7. It imposes stringent conditions on the borrowing nations to tighten their budgets, practice fiscal prudence, and reduce their expenditure.
8.  This is often unpopular, especially among the developing countries which may have to cut down on various programmes that provide subsidies to the people.