Asked by Viviana Paola on May 29, 2024
Verified
Statement I: The International Monetary Fund (IMF) was set up as a lender of last resort to discourage member nations from devaluating their currency.
Statement II: The World Bank was created in the same year as the IMF for the purpose of making long-term,low-interest loans to developing countries,mainly to build highways,bridges,dams,power generators,and water supply systems.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
International Monetary Fund
An international organization that aims to foster global monetary cooperation, secure financial stability, and facilitate international trade.
World Bank
An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.
- Assimilate the arrangement and aims of foremost international economic frameworks and agreements (e.g., IMF, World Bank, NAFTA, WTO).
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
C
Explanation :
Both statements are true. The IMF was indeed set up as a lender of last resort to discourage member nations from devaluating their currency. The World Bank was created in the same year as the IMF and was established to make long-term, low-interest loans to developing countries for infrastructure projects like highways, bridges, dams, power generators, and water supply systems.
Learning Objectives
- Assimilate the arrangement and aims of foremost international economic frameworks and agreements (e.g., IMF, World Bank, NAFTA, WTO).
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