Which of the following is a function of the International Monetary Fund?
A. Regulating international trade rules
B. Providing long-term project finance for infrastructure development
C. Providing short-term financial assistance for balance of payments problems and conducting surveillance
D. Providing only bilateral aid
Answer: Option C
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.
Explanation:
Fiscal deficit = Total expenditure − (Revenue receipts + Non-debt capital receipts). It indicates the total borrowing requirement of the government.
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