Question

The International Monetary Fund (IMF) is an international organisation that -

• A. Was created in 1955 as the successor to the GATT
• B. Provides loans and grants to the multinational corporations and human rights organisations.
• C. Promotes the peaceful use of nuclear energy.
• D. Oversees financial institutions and regulations that act at the international level.

Hint:

The IMF deals with money and financial stability. Nuclear energy and the GATT belong to other bodies.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept
The question asks which statement correctly describes the International Monetary Fund (IMF). The IMF is one of the main economic organisations linked with the United Nations system. It was set up to keep the world money system stable.

Step 2: Key Facts to Recall
1. The IMF and the World Bank were created at the Bretton Woods Conference in 1944 and began work in 1945.
2. The IMF supervises the international monetary system, watches exchange rates and gives loans to member countries with payment problems.
3. The GATT was a trade agreement. Its successor is the World Trade Organization (WTO), formed in 1995.

Step 3: Check option 1
The IMF was not created in 1955. It was born out of Bretton Woods in 1944-45. Also, the GATT was not replaced by the IMF. The WTO took over from the GATT. So option 1 is wrong.

Step 4: Check option 2
The IMF lends money to governments of member countries, mainly when they face balance of payments trouble. It does not give loans or grants to multinational corporations or human rights groups. So option 2 is wrong.

Step 5: Check option 3
The peaceful use of nuclear energy is promoted by the International Atomic Energy Agency (IAEA), not the IMF. So option 3 is wrong.

Step 6: Check option 4
The IMF oversees financial institutions and the rules that work at the international level, and it keeps watch on the global financial system. This matches its role. So option 4 is right.

Final Answer:
The IMF oversees international financial institutions and regulations, which is option 4. \[ \boxed{\text{Option 4}} \]