Which of the Following Statements Is True About the Role

question 21

Multiple Choice

Which of the following statements is true about the role of the International Monetary Fund?

• A) It never interfered in the monetary and fiscal conditions of its member countries.
• B) It was authorized to approve currency devaluations of only up to 10 percent.
• C) It required member countries to adhere to specific agreements irrespective of the amount of funds the countries borrowed.
• D) It lent money under the International Bank for Reconstruction and Development (IBRD) scheme and a second scheme which is overseen by the International Development Association (IDA).
• E) It helped deficit-laden countries bring down inflation rates by providing short-term foreign currency loans.

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Definitions:

Journalizing

The process of recording financial transactions in a journal or diary, marking the first step in the accounting cycle.

General Journal

A general journal is a fundamental accounting record where all day-to-day financial transactions of a business are initially recorded.

Ledger Accounts

Financial records within a ledger that summarize the transactions related to a company's assets, liabilities, equity, revenues, and expenses.

Trial Balance

A financial spreadsheet where the totals from all accounts are gathered into columns for debits and credits, serving to verify the mathematical accuracy of a firm's accounting records.