2. Functions Of World Bank :-
To provide long-run capital to
member countries for
economic reconstruction and
development.
3. To induce long-run capital
investment for assuring
Balance of Payment (BOP)
equilibrium and balanced
development of
international trade.
4. Bank grants loan to a member
country up to 20% of its share in
the paid-up capital.
The quantities of loans,
interest rate and terms and
condition are determined by
the bank itself.
5. To ensure the implementation
of development project so as
to bring about a smooth
transference from a war-time
to peace economy.
6. To promote capital investment
in member countries by
following ways:-
(a) To provide guarantee on
private loans
(b) IBRD provide loans for
productive activities
on considerate conditions.
7. Functions Of IMF :-
IMF main function is to
purchase and sell the
member countries
currencies.
8. If any country is facing adverse balance
of payment, it can get short term credit
from the fund to clear the debt.
The IMF allows the country to
purchase foreign currency in
exchange for its own currency
up to 75% of its quota plus an
addition 25% each year. The
max. limit is 200% (special
circumstances).
9. If the demand of any particular
country currency increases and
its stock with IMF falls below
75% of its quota, the IMF can
declare it scare.
But IMF also tries to increase
its supply by Purchasing or
borrowing.
10. The main aim of IMF is to promote
exchange stability among the member
countries. So it advises the member
countries to conduct exchange
transactions at agreed rates.
Counties can change exchange rate
without the consent of the IMF but it
should not be more than 10%.
The country can not change the
exchange rate if IMF does not allow.
11. When the devaluation policy is
indispensable or any country then IMF
provides loan to correct the balance of
payment of that country.
13. International Monetary Fund World Bank
Oversees the international
monetary system.
Promotes exchange stability
and orderly exchange relations
among its member countries.
Draws its financial resources
principally from the quota
subscriptions of its member
countries.
Seeks to promote the economic
development of the world's
poorer countries.
Assists developing countries
through long-term financing of
development projects and
programs.
Acquires most of its financial
resources by borrowing on the
international bond market.
14. International Monetary Fund World Bank
Provide loans to the countries
up to 75% of there quota in
IMF.
So, basically it works as the
controller of currency
exchange rate & helps
countries in maintaining BOP.
Provide loans to the countries up
to 20% of there paid-up capital in
World bank.
So, basically it works as a bank
which provide long-term loans &
helps countries in developing item
selfs.