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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 it to developed countries.
C. A pool of gold and currencies contributed by its members provides the resources for the 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
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