the goals of the IMF (4)

if a loan could provide finance to the borrower until the payments imbalance reversed itself,then there would be no need for alteration of the deficit nation is macro policies in the direction of sacrificing internal goals.in addition,an IMF loan might reduce the likelihood that the deficit country would impose tariffs and other restrictive instruments on imports to conserve its foreign exchange reserves.Along the same line,fewer exchange controls on capital movements might be introduced.Hence,the availability of IMF loans not only could serve the purpose of giving more autonomy to domestic macro policy instruments but also contributed to a third objective of the IMF: to help preserve relatively free trade and payments in the world economy.what were the sources of the funds for BOP loans? when a country joins the IMF (there are now 184 IMF member nations),it is assigned an IMF quota.this country quota is a sum of money to be paid to the IMF based on such factors as the national income of the country and the size of its foreign trade sector.