Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Use of Resources - INTERNATIONAL MONETARY FUND:
IMF provides temporary assistance to member-countries to tide over balance of payments deficits. When the country requires foreign exchange, it tenders its own currency to the IMF and gets the foreign exchange. This is known as 'drawing' from the Fund. When the BOP situation of the country improves, it should 'repurchase' its currency from the IMF and repay the foreign exchange. Ordinarily, for a member-country, a first borrowing or drawing is virtually automatic and without strings. A country simply calls for the return of its original 25 per cent share (called the "reserve tranche") paid in hard currency.
After that, it may borrow the "first credit tranche", another 25 per cent with virtually no strings. Three further credit tranches may be borrowed in each of three subsequent years, and each amounting to 25 per cent of the original quota. At the end of the 5 years, the upper limit of 125 per cent is reached. In addition, a member can borrow a further 90 per cent of quota annually for three years under the "enlarged access" policy. With the enlarged access policy, further loans from 270 to 330 per cent of quota can be obtained in a three-year period, in addition to the normal lending. But all this is subject to a cumulative upper limit of 400 to 440 per cent of quota. While borrowing under earlier credit tranches does not involve any obligation to adopt IMF directed policy changes, borrowing under higher tranches and extended access facility does involve such obligations. Typically, the IMF will require as prerequisites for borrowing cutbacks in budget deficit including subsidies to various sectors of the economy, reduction in the rate of monetary expansion, measures to restrain wages and prices, devaluation of an overvalued exchange rate, and some action to make the price system reflect costs more accurately and some turn towards the encouragement of exports. These are known as conditionalities that are imposed on the borrowers who want to make use of IMF facilities.
V alue Additivity In an efficient market the value of any 2 assets can be estimated as the sum of the values of the two individual assets. This is a variation on the theme
The demand for soft drinks has been estimated asQx 20PX 0.25PY0.45M 2 Determine the own, cross and income price elasticities of demand. Interpret your results.
The prevention of major swings in economic activity can be handled most easily by the
how to find total revenue total cost approch in equilibrium firms
Name the five types of capital. The five types of capital are: natural capital, manufactured capital, human capital, social capital and financial capital.
"In U.S., there is a culture of greeting people of the same sex. It's not common that people give attention to the people of the opposite sex. However, in the middle class, it's a
EM13250 solution needed
explain and illustrate the changing demand for big mac using indefference curve and budget line
Explain the term economic efficiency? Answer: Economic Efficiency means full utilization of all available resources in economy i.e. to produce the needed amount of goods and
Policy Implications: The expansion of the services sector has wider implications for population, employment, and trade prospects of the economy, some of which are as follows:
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd