International Monetary Fund (IMF): 30 Multiple Choice Questions
Click the "Show Answer" button below each question to reveal the correct option and explanation.
1. When was the International Monetary Fund (IMF) created?
Correct Answer: b) 1945
The IMF was created in 1945, as part of the Bretton Woods Agreement.
The IMF was created in 1945, as part of the Bretton Woods Agreement.
2. What is the primary goal of the IMF?
Correct Answer: b) Foster global monetary cooperation and financial stability
The IMF works to achieve sustainable growth by supporting economic policies that promote financial stability and monetary cooperation.
The IMF works to achieve sustainable growth by supporting economic policies that promote financial stability and monetary cooperation.
3. Where is the headquarters of the IMF located?
Correct Answer: c) Washington, D.C.
The IMF is headquartered in Washington, D.C., United States.
The IMF is headquartered in Washington, D.C., United States.
4. How many member countries does the IMF have as of 2025?
Correct Answer: b) 191
The IMF has 191 member countries, working to foster global monetary cooperation.
The IMF has 191 member countries, working to foster global monetary cooperation.
5. The IMF was established under which agreement?
Correct Answer: b) Bretton Woods Agreement
The Bretton Woods Agreement in 1944 led to the creation of the IMF.
The Bretton Woods Agreement in 1944 led to the creation of the IMF.
6. What does the IMF help correct in member countries?
Correct Answer: b) Balance of Payments deficits
The IMF helps in correcting the Balance of Payment of the member countries.
The IMF helps in correcting the Balance of Payment of the member countries.
7. Who is the current Managing Director of the IMF (as of October 2025)?
Correct Answer: b) Kristalina Georgieva
Kristalina Georgieva has been the Managing Director since 2019.
Kristalina Georgieva has been the Managing Director since 2019.
8. What is the IMF's unit of account called?
Correct Answer: b) Special Drawing Rights (SDR)
SDR is an international reserve asset created by the IMF.
SDR is an international reserve asset created by the IMF.
9. Which of the following is NOT a primary activity of the IMF?
Correct Answer: d) Regulating domestic interest rates
The IMF's activities include surveillance, financial assistance, and capacity development, but not direct regulation of interest rates.
The IMF's activities include surveillance, financial assistance, and capacity development, but not direct regulation of interest rates.
10. The IMF provides loans primarily to address:
Correct Answer: b) Balance of payments problems
The IMF grants credit to member countries experiencing balance of payments deficits.
The IMF grants credit to member countries experiencing balance of payments deficits.
11. What determines a member's voting power in the IMF?
Correct Answer: b) Quota contributions
Voting power is based on the size of a member's financial quota.
Voting power is based on the size of a member's financial quota.
12. The IMF became operational in:
Correct Answer: c) 1947
The IMF became operational on March 1, 1947.
The IMF became operational on March 1, 1947.
13. Which institution was created alongside the IMF at Bretton Woods?
Correct Answer: b) World Bank
The World Bank (IBRD) was established alongside the IMF.
The World Bank (IBRD) was established alongside the IMF.
14. The IMF's surveillance involves:
Correct Answer: a) Monitoring exchange rates and economic policies
Surveillance over the monetary and exchange rate policy of member countries is a key function.
Surveillance over the monetary and exchange rate policy of member countries is a key function.
15. What is the IMF's role in promoting exchange rate stability?
Correct Answer: b) Facilitating orderly exchange arrangements
To maintain stability and prevent crises in the international monetary system.
To maintain stability and prevent crises in the international monetary system.
16. Loans from the IMF are subject to:
Correct Answer: b) Strict conditionality
Credit is subject to strict conditionality terms and members must accept structural reforms.
Credit is subject to strict conditionality terms and members must accept structural reforms.
17. The IMF's funding comes mainly from:
Correct Answer: b) Member quotas
The IMF receives funds from member country quotas based on the relative size of their economies.
The IMF receives funds from member country quotas based on the relative size of their economies.
18. Which country has the largest voting share in the IMF?
Correct Answer: c) United States
The US holds about 16.5% of the vote, giving it veto power on major decisions.
The US holds about 16.5% of the vote, giving it veto power on major decisions.
19. The IMF provides technical assistance in areas like:
Correct Answer: a) Taxation and monetary policy
Capacity development includes training in taxation, administration, monetary policies, etc.
Capacity development includes training in taxation, administration, monetary policies, etc.
20. What is a common criticism of the IMF?
Correct Answer: b) One-size-fits-all approach to reforms
Critics argue the IMF uses a cookie-cutter approach, assuming domestic causes for economic issues.
Critics argue the IMF uses a cookie-cutter approach, assuming domestic causes for economic issues.
21. The SDR was created in:
Correct Answer: a) 1969
Special Drawing Rights were introduced in 1969 to supplement member reserves.
Special Drawing Rights were introduced in 1969 to supplement member reserves.
22. IMF membership is open to:
Correct Answer: b) Countries that accept its charter
Any country can apply for membership by accepting the IMF's Articles of Agreement.
Any country can apply for membership by accepting the IMF's Articles of Agreement.
23. The IMF's executive board is chaired by:
Correct Answer: b) The Managing Director
The Managing Director chairs the Executive Board meetings.
The Managing Director chairs the Executive Board meetings.
24. During financial crises, the IMF often requires:
Correct Answer: b) Structural reforms
Loans come with conditions for economic reforms to ensure sustainability.
Loans come with conditions for economic reforms to ensure sustainability.
25. The IMF collaborates with which organization for global economic policy?
Correct Answer: c) Both a and b
The IMF works closely with the World Bank and WTO on coherent economic policies.
The IMF works closely with the World Bank and WTO on coherent economic policies.
26. What was the purpose of the IMF post-World War II?
Correct Answer: b) Prevent economic crises like the Great Depression
Created as a solution to avoid a repeat of the Great Depression.
Created as a solution to avoid a repeat of the Great Depression.
27. The IMF's World Economic Outlook is published:
Correct Answer: b) Twice a year
Updated in April and October for global surveillance.
Updated in April and October for global surveillance.
28. Which is a key principle of IMF lending?
Correct Answer: b) Promoting market-oriented economies
Application of market economy principles and opening up economies.
Application of market economy principles and opening up economies.
29. The IMF has been involved in bailouts for countries like:
Correct Answer: c) Both a and b
The IMF provided multiple bailouts to Greece and Argentina during debt crises.
The IMF provided multiple bailouts to Greece and Argentina during debt crises.
30. The IMF's approach emphasizes:
Correct Answer: a) Low inflation and fiscal restraint
The IMF pushes for policies aimed at low inflation and fiscal discipline.
The IMF pushes for policies aimed at low inflation and fiscal discipline.
