UPSC Prelims 2011·GS1·economy·open economy

Regarding the International Monetary Fund, which one of the following statements is correct?

Dalvoy logo
Reviewed by Dalvoy
UPSC Civil Services preparation
Last updated 23 May 2026, 3:31 pm IST
  1. AIt can grant loans to any country
  2. BIt can grant loans to only developed countries
  3. CIt grants loans to only member countriesCorrect
  4. DIt can grant loans to the central bank of a country

Explanation

The correct answer is C because the International Monetary Fund (IMF) functions as a membership based organization. According to its Articles of Agreement, the IMF provides financial assistance specifically to its member countries to help them address balance of payments problems. It does not provide loans to non member countries, nor is it restricted to only developed nations. While the funds are often used to support a countrys reserves managed by a central bank, the formal loan agreement is made with the member government itself. Therefore, membership is the primary eligibility criteria for receiving a loan.
economy: Regarding the International Monetary Fund, which one of the following statements is correct?

Related questions

More UPSC Prelims practice from the same subject and topic.