All of the Following Are Purposes of the International Monetary

question 51

Multiple Choice

All of the following are purposes of the International Monetary Fund (IMF) EXCEPT:

• A)To promote international monetary cooperation through a permanent institution.
• B)To facilitate the expansion and balanced growth of international trade.
• C)To develop a world currency by 2010.
• D)To promote exchange stability.
• E)To give confidence to members by making the general resources of the fund temporarily available to them under adequate safeguards.

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Definitions:

Real Return

The yield on an investment once inflation adjustments have been made.

Nominal Return

The amount of profit or loss on an investment before adjusting for factors like inflation, representing the raw financial outcome.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, eroding purchasing power.

Bondholders

Individuals or entities that hold the debt securities issued by corporations or governments, entitled to receive the bond's interest payments and the return of principal.