The International Monetary fund today Doesnt exist it was ph

The International Monetary fund today: Doesn\'t exist, it was phased out in 1971 with the collapse of the Bretton Woods System OServes only in the role of financing current account deficits. O Serves only in an advisory capacity, it does not have any lending powers. O Provides loans to countries facing a capital crisis and serves in an advisory capacity.

Solution

The International Monetary Fund

d) Provides loans to countries facing a capital crisis, and, serves in an advisory capacity

IMF provides assistance to emerging, and, advance market economies. The lending is for nations to implement adjustment policies for sustainable growth, and, a stable economy. Countries with severe capital outflows can address the loss of investor confidence.

The Law of One Price is a Useful Theory

a) Only when applied to long-run periods of time

it is a theory of purchasing power parity. The law of one price is a theory of exchange rate determination. It compares the average cost of services, and, goods.

Changes in relative national price levels determine changes in the exchange rate over the long-run.