Which of the Following Is Not Something That the International

question 16

Multiple Choice

Which of the following is not something that the International Monetary Fund does?

• A) Provides short-term loans to member countries
• B) Functions as a world central bank
• C) Eliminates trade barriers between nations
• D) Fosters international financial cooperation
• E) Provides individual home and auto loans

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Definitions:

Proportional Tax

A tax for which high-income and low-income taxpayers pay the same fraction of income.

Tax System

The organized method or structure through which a government or authority collects taxes from individuals and businesses within its jurisdiction.

Horizontal Equity

A principle of taxation asserting that taxpayers with similar income or ability to pay should be taxed at the same rate.

Vertical Equity

Refers to the principle that individuals who are more capable of paying taxes should contribute more to the tax system, ensuring a fairer distribution based on ability to pay.