13. What institution often sets "foreign loan conditionalities"?
A. United Nations
B. World Trade Organization
C. International Monetary Fund (IMF)
D. ASEAN
Answer (1)
The answer is letter C. International Monetary Fund (IMF)The IMF lends money to countries in economic trouble, but the loans come with “conditions.” These might include reducing government spending, increasing taxes, or changing economic laws. These rules are called conditionalities.While these changes aim to help a country repay debt and reform its economy, they can also hurt poor citizens if social services are cut. That’s why countries must carefully study the effects before accepting such conditions.
