Question 1

The International Monetary Fund (IMF) makes short-term loans to developing countries experiencing balance-of-payment deficits.

Accepted Answer

This statement is true. The IMF provides short-term loans to member countries experiencing difficulties in their balance-of-payment positions, which occur when a country is importing more than it is exporting or when its foreign debt payments exceed its foreign earnings. The aim of such loans is to help these countries stabilize their economies, prevent currency crises, and promote sustainable growth.

Question 2

An international bank that makes short-term loans to countries experiencing balance-of-payment deficits is called a multilateral development bank.

Accepted Answer

A multilateral development bank provides long-term loans for development projects, not short-term loans for balance-of-payment deficits. Examples of multilateral development banks include the World Bank, Asian Development Bank, and African Development Bank.

Question 3

All five multilateral development banks are supported by the industrialized nations, including the United States.

Accepted Answer

The five multilateral development banks, including the World Bank and the Asian Development Bank, are supported by industrialized nations such as the United States, as well as the developing nations they serve.

Quiz 3: Exploring Global Business

The International Monetary Fund (IMF) makes short-term loans to developing countries experiencing balance-of-payment deficits.

An international bank that makes short-term loans to countries experiencing balance-of-payment deficits is called a multilateral development bank.

All five multilateral development banks are supported by the industrialized nations, including the United States.