Chapter 7 Flashcards
is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world
International Monetary Fund (IMF)
IMF works to:
foster global monetary cooperation
secure financial stability
facilitate international trade
promote high employment and sustainable economic growth
reduce poverty around the world
provides policy advice and financing to members in economic difficulties and also works with developing nations to help them achieve macroeconomic stability and reduce poverty
IMF
IMF continues to:
provide a forum for cooperation on internation monetary problems
facilitate the growth of international trade
promote exchange rate stability and an open system of international payments
lend countries foreign exchange when needed
how many countries does IMF has
188
how to become a member of IMF
a country must apply and then be accepted by a majority of the existing members
what country is the 188th member of IMF
Republic of South Sudan
defines its financial and organizational relationship with the IMF
member country’s quota
a member countrys quota includes
subscriptions
voting power
access to financing
SDR allocations
it determinea the maximum amount of financial resources the country is obliged to provide to the IMF
member country’s quota subscriptions
how member countrys quota subscription works
25 percent must be paid in the IMFs own currency called special drawing rights or the widely accepted currencies, while the rest is paid in the members own currency
widely accepted currencies
dollar
euro
yen
pound sterling
how voting power works
each IMF member votes are comprised of basic votes plus one additional vote for each SDR 100,000 of quota
are used as an international reserve asset
SDR
