Which of the following is not the objective of the IMF?
A.
To promote international monetary cooperation
B.
To ensure balanced international trade
C.
To ensure exchange rate stability
D.
To provide loan to private sectors
Answer: Option D
Explanation:
Allotment of the loan to the private sector is not covered under the objectives of the IMF. International Finance Corporation is responsible to provide loan to private sectors.
If the Balance of Payment of a country is adverse, then which institution will help that country?
A.
World Bank
B.
World Trade Organization
C.
International Monetary Fund
D.
Asian Development Bank
Answer: Option C
Explanation:
The International Monetary Fund helps in correcting the Balance of Payment of the member countries. Its another goal is to ensure exchange rate stability.
Which of the following currency is not included in the calculation of SDR value?
A.
Yen
B.
Yuan
C.
Rupee
D.
Pound sterling
Answer: Option C
Explanation:
In determining the IMF basket, rupee's value is not included. Since October 1, 2016 SDR basket consists of the following five currencies: U.S. dollar, Euro, Renminbi (Chinese Yuan), Japanese Yen and British Pound.
Which of the following is known as the Paper Gold?
A.
US Dollar
B.
Pound
C.
Demand draft
D.
Special Drawing Right
Answer: Option D
Explanation:
Special Drawing Right is known as the Paper Gold. The value of the SDR is based on a basket of key international currencies reviewed by IMF every five years. SDR was introduced in the 1969 by the IMF to solve the problem of International liquidity.
