Which of the Following Statements About the IMF Is True

question 44

Multiple Choice

Which of the following statements about the IMF is true?

• A) The IMF contributed toward providing international liquidity and toward facilitating international trade.
• B) In light of the worldwide slowdown of economies and the financial crisis, the IMF focused on its traditional customers of the developed markets and economies.
• C) In order to ensure that a local stimulus would not be suffocated by global restrictions, the IMF minimized simultaneous expansions in economies.
• D) The original goal of the IMF ensured variable exchange rates between countries.

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another for more than the fair value of its net tangible and identifiable intangible assets.

Partial Equity Method

An accounting approach where an investor recognizes its share of investee profits or losses until the carrying amount of the investment is reduced to zero, differing from the full equity method by not recognizing losses beyond the initial investment cost.

Equity Method

A financial accounting approach for recording investments in associated companies by reflecting the owner's share of the investee's profit or loss within the investor's financial statements.

Partial Equity Method

An accounting method used for investments where the investor has significant influence, recording income based on the proportion of earnings rather than dividends received.