FINANCIAL MARKETS

Summary

IMF is the central organization to the world which provides monetary cooperation . Almost all countries across the globe work together in the organization to achieve a common goal . IMF was envisioned in Bretton Woods , northeastern United States in the year 1994 . The primary motive behind setting up the institution was to avert any disastrous economic mistakes in the future that could cause a crisis as big as the Great Depression again . Providing loans to member countries to rebuild reserves , stabilize currencies , continue trade and restore economic health are among the

primary role for IMF . The three main functions of IMF are : surveillance or monitoring economic development and provide advice on policies , lending money and providing technical assistance . A country can borrow from IMF if the balance of payment need arises . So the loan provides a cushion so that economic reforms and corrective measures can be taken and a growth oriented economy can be built . The IMF has 186 member countries which contribute operating funds . They get voting rights depending on the amount of international trade , global reserve holdings and national income . IMF has no obligatory right over member countries , however if a country does not adhere with its policies , it may deny to provide loans to them or leave the organization . Critics however argue that the stern measures and rules of the organization make it difficult for borrowing countries to grow , and make it even more difficult for poor countries to deal with crises . The amount of loan provided...