A West African member nation is simultaneously experiencing a severe liquidity deficit in its foreign exchange reserves, causing a temporary balance of payments disequilibrium, and seeking concessionary long-term capital to construct a cross-border energy transmission grid. Which pair of international economic institutions is appropriately mandated to resolve these two distinct financial challenges?
- The International Monetary Fund (IMF) for short-term balance of payments stabilization, and the African Development Bank (AfDB) for long-term regional infrastructure financingCevap
- BThe World Bank for short-term balance of payments stabilization, and the International Monetary Fund (IMF) for long-term regional infrastructure financing
- CThe World Trade Organization (WTO) for foreign exchange liquidity support, and the African Development Bank (AfDB) for structural adjustment financing
- DThe Economic Community of West African States (ECOWAS) for macroeconomic stabilization loans, and the Organization of the Petroleum Exporting Countries (OPEC) for infrastructure grants
Cevap
The International Monetary Fund (IMF) provides short-term balance of payments stabilization, while the African Development Bank (AfDB) provides long-term regional infrastructure financing.
The option specifying the International Monetary Fund (IMF) for short-term balance of payments stabilization and the African Development Bank (AfDB) for long-term regional infrastructure financing is correct because it accurately distinguishes between monetary stabilization mandates and development finance mandates.
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Anahtar Kavram
Functional mandates of international financial institutions and regional economic organizations