Where the IMF Gets its money?
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A Simple video to explain IMF Sources.
#imf #internationalmonetaryfund
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Hello focus24 family. We all must have heard about the role of IMF, which is, International Monetary Fund, in stabilizing the economies of the world. However, in some way or the other, one question which bothers every student at all the times, ‘From Where Does IMF get its money!’
Today’s video is going to be an effort to explore how and from where does IMF gets its money, so as to lend it to other countries.
Dear Student, The IMF’s financial resources mainly come from the money that countries pay as their capital subscription (or quotas) when they become members. Each member of the IMF is assigned a quota, based broadly on its relative position in the world economy. Countries can then borrow from this pool when they fall into financial difficulty.
As, the size of each quota is determined by the size of each member’s economy. The quota in turn determines the weight each country has within the IMF—and hence its voting rights—as well as how much financing it can receive from the IMF.
The larger the country, the larger its contribution. Thus the U.S. contributes 17.44% while the Seychelles Islands contribute a modest 0.005%
Because the IMF lends its money with “strings attached” in the form of its Rules and Regulations, many people and organizations are vehemently opposed to its activities. Opposition groups claim that structural adjustment is an undemocratic and inhumane means of loaning funds to countries facing economic failure. Debtor countries to the IMF are often faced with having to put financial concerns ahead of social ones.12
Thus, by being required to open up their economies to foreign investment, privatize public enterprises, and cut government spending, these countries suffer an inability to properly fund their education and health programs.13
Moreover, foreign corporations often exploit the situation by taking advantage of local cheap labor while showing no regard for the environment. The oppositional groups say that locally cultivated programs, with a more grassroots approach towards development, would provide greater relief to these economies. Critics of the IMF say that, as it stands now, the IMF is only deepening the rift between the wealthy and the poor nations of the world.
What’s your opinion IMF? Feel free to share your opinion in the comments down below, See you soon.
Todays video is going to be very informative for all those students who wanted to understand IMF (International Monetary Fund) in detail. KFA (k4a) brings out a detailed lecture for all of you covering all the aspects of imf. Apart from addressing one of basic question regarding IMF i.e What is IMF, we are also going to talk about imf terminology meaning and imf grant. We will cover imf jobs i.e the tasks and responsibilities of imf. We would highlight the aspect of imf debt forgiveness rules and regulations.
The full form if IMF is International Monetary Fund. The headquarter of IMF is located in Washington D.C. The definition of IMF is covered by as its name, i.e looking after monetary aspects of the and imf data visualization. If someone asks in simplest form as to what is imf and what does it do, the simplest answer to that would be that imf monitors world economic outlook. It also looks after international monetary fund grants. As said earlier, imf international monetary fund is a very important organization of the world. international monetary fund organization purpose is to monitor the financial aspects of the world. The organization of IMF is a very essential tool to look after the international monetary fund program. It ensures that the imf gold and imf grants for individuals is being governed as per the policy. So by the end of this video, we expect that you have become well aware of what is IMF.
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Who Funds the International Monetary Fund, Where the IMF Gets its money?.
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