Chapter 19, Student Web Activity, Economics Principles and Practices, Glencoe, 2005

Chapter 19: Developing Countries
"The International Monetary Fund"

Introduction
You have already learned that industrialized nations provide external funding to the developing countries. This financing can be direct aid, or it could be indirect aid to international agencies such as the World Bank or the International Monetary Fund (IMF). Countries wanting to set up an international system of fixed exchange rates formed the IMF in 1944. Today, the IMF offers advice to all nations on monetary and fiscal policies. It also helps support the currency of some developing nations with loans so that the countries can compete in an open market. In this activity, you will learn more about the International Monetary Fund.

Destination Title: The International Monetary Fund

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Directions
Start at the International Monetary Fund Web site.

Select the "About the IMF" category.
Then select the "IMF at a Glance" category. Print a copy of the page or read the page on screen and answer the following questions.

1. Explain why the International Monetary Fund was created.

2. What are the areas of activity of the IMF?

3. Go to the "Frequently Asked Questions" link. Where does the IMF get its money?

4. From the "Frequently Asked Questions" menu, select the "Who Belongs To The IMF" link. Find any five countries and report their contributions as a percent of total IMF contributions.