Explain the functions of International Monetary Fund.  (I. Imp.)

Functions are as under :

1. Acting as a short term credit institution.

2. Providing machinery for the orderly adjustment of exchange rates.

3. Acting as a reservoir of the currencies of all the member countries, from which a borrower nation can borrow the currency of other nations.

4. Acting as a lending institution of foreign currency and current transaction.

5. Determining value of a country's currency and altering it, if needed, so as to bring about an orderly adjustment of exchange rates of member countries; and

6. Providing machinery for international consultations.