A developing nation facing a severe short-term foreign exchange crisis requires immediate balance of payments assistance, while a neighboring country requires long-term concessionary financing to construct a hydroelectric dam. Which international financial institutions are established specifically to fulfill these respective functions?
- The International Monetary Fund for short-term balance of payments support, and the World Bank for long-term structural project developmentCevap
- BThe World Bank for short-term balance of payments support, and the International Monetary Fund for long-term structural project development
- CThe World Trade Organization for short-term liquidity, and the African Development Bank for tariff negotiation
- DThe Organization of the Petroleum Exporting Countries for balance of payments assistance, and the International Monetary Fund for infrastructure development
Cevap
The International Monetary Fund provides short-term balance of payments assistance, while the World Bank provides long-term project development financing.
The correct option accurately distinguishes between the primary objectives of the Bretton Woods financial institutions: the International Monetary Fund (IMF) offers financial assistance and credit facilities to member countries suffering from short-term balance of payments equilibrium challenges, while the World Bank (and its soft-loan arm, IDA) funds long-term economic development initiatives such as infrastructure, health, and education.
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Anahtar Kavram
Distinction between IMF short-term balance of payments stabilization and World Bank long-term development financing