Which of the following is NOT a function of the International Monetary Fund? MCQ with Answer and Explanation

Which of the following is NOT a function of the International Monetary Fund?
A. Technical assistance and capacity building
B. Providing short-term financial assistance for balance of payments problems
C. Surveillance of member countries' economic policies
D. Providing long-term project finance for infrastructure
Answer: Option D
Solution (By JKSSB Mock Tests)
Long-term project finance for infrastructure is primarily the role of the World Bank. The IMF focuses on short-term BOP support, surveillance and technical assistance.

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Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' on passenger transport by air-conditioned buses is:
A. 0%
B. 18%
C. 12%
D. 5%

Correct Answer: Option D


Explanation:
AC bus passenger transport attracts 5% GST.

This question belongs to: Economy GK Economy Set 1
Question #2
In the context of cost curves, when Marginal Cost is less than Average Cost:
A. Average Cost is falling
B. Average Cost is constant
C. Average Cost is at its maximum
D. Average Cost is rising

Correct Answer: Option A


Explanation:
When MC is below AC, it pulls the average down, so AC is falling. AC starts rising only when MC exceeds AC.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a feature of the capital account convertibility?
A. Freedom to convert local financial assets into foreign financial assets and vice versa
B. Only export-related convertibility
C. Complete ban on capital flows
D. Freedom to convert local currency into foreign currency for current account transactions only

Correct Answer: Option A


Explanation:
Capital account convertibility allows residents and non-residents to convert local currency into foreign currency and transfer capital freely for investment and other capital transactions.

This question belongs to: Economy GK Economy Set 1