How does the International Monetary Fund (IMF) provide loans to defici

QUESTION

How does the International Monetary Fund (IMF) provide loans to deficit-laden countries?

A. It prints the required currencies, thereby increasing money supply in those countries.

B. It acts as a market, buying goods from these countries and selling them to developed countries.

C. A pool of gold and currencies contributed by its members provides the resources for lending operations.

D. The World Bank lends the required amount to the IMF at a low interest rate.

E. It collects money from those countries that wish to devaluate their currencies.

ANSWER

C