Germany is experiencing balance-of-payment deficits and needs a short-term loan.It will most likely turn to _____ for the loan.
A) the International Monetary Fund.
B) the European Bank for Reconstruction and Development.
C) the World Bank.
D) the Federal Reserve Bank.

Question

Germany is experiencing balance-of-payment deficits and needs a short-term loan.It will most likely turn to _____ for the loan.
A) ​the International Monetary Fund.
B) ​the European Bank for Reconstruction and Development.
C) ​the World Bank.
D) ​the Federal Reserve Bank.

Quizplus · Accepted Answer

Germany would most likely turn to the International Monetary Fund (IMF) for a short-term loan to address its balance-of-payment deficits. The IMF provides loans to member countries facing economic difficulties and is the most common international institution to provide short-term financing for balance-of-payment deficits. The European Bank for Reconstruction and Development (EBRD) and the World Bank do not typically provide short-term loans for balance-of-payment deficits, and the Federal Reserve Bank is the central bank of the United States and not involved in providing loans to foreign countries.

Germany Is Experiencing Balance-Of-Payment Deficits and Needs a Short-Term Loan