Which of the two features of the IMF Articles of Agreement helped promote flexibility in external adjustment?
A) IMF members helped countries maintain full employment.
B) IMF allowed countries to attain internal balance.
C) New countries would enter the agreement if they fixed their exchange rate.
D) IMF members contributed their currency to form a pool of resources that IMF could lend to countries in need and parities in the exchange rate against the dollar could be adjusted with agreement of IMF.
E) IMF members argued against the use of floating exchange rates.

Question

Quizplus · Accepted Answer

The feature of the IMF Articles of Agreement that allowed IMF members to contribute their currency to form a pool of resources that IMF could lend to countries in need and parities in the exchange rate against the dollar could be adjusted with agreement of IMF promoted flexibility in external adjustment. This allowed countries to maintain their exchange rates while also adjusting their economies to respond to changing external conditions.

Which of the Two Features of the IMF Articles of Agreement