Which of the following is a function of the International Monetary Fund? MCQ with Answer and Explanation

Which of the following is a function of the International Monetary Fund?
A. Providing long-term project finance for infrastructure development
B. Regulating international trade rules
C. Providing only bilateral aid
D. Providing short-term financial assistance for balance of payments problems and conducting surveillance
Answer: Option D
Solution (By JKSSB Mock Tests)
The IMF provides temporary financial support to countries facing balance of payments difficulties, conducts economic surveillance and offers technical assistance. Long-term project finance is the domain of the World Bank.

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Practice More Economy Set 1 Questions

Question #1
The 'credit card' allows a customer to:
A. trade securities
B. spend from bank account only
C. deposit cash only
D. borrow money up to a limit for purchases

Correct Answer: Option D


Explanation:
A credit card allows borrowing up to a limit for purchases.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'balanced growth theory' emphasizes simultaneous investment in:
A. agriculture only
B. one sector only
C. multiple sectors to create demand
D. banking only

Correct Answer: Option C


Explanation:
Balanced growth advocates simultaneous investment in mutually supporting sectors.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of the Indian economy, the 'Demographic Dividend' refers to:
A. Decline in the total population
B. Increase in the proportion of dependent population
C. Economic growth potential from a large working-age population
D. Increase in the old-age population only

Correct Answer: Option C


Explanation:
Demographic dividend arises when a large share of the population is of working age, providing an opportunity for higher economic growth if this workforce is productively employed.

This question belongs to: Economy GK Economy Set 1