What are the core functions of the IMF?

The core functions of the International Monetary Fund (IMF) revolve around surveillance, lending, and capacity development, which are fundamental to its mission of ensuring global financial stability.

Surveillance allows the IMF to monitor the economic and financial developments of its member countries, offering assessments and forecasts that help identify potential risks to stability. By analyzing economies and providing policy advice, the IMF plays a preventive role, enabling countries to implement effective measures to counter economic challenges.

Lending is another critical function of the IMF. It provides financial assistance to member countries facing balance of payments problems. This lending aims to stabilize economies in crisis, allowing countries to restore their financial health and continue engaging in international trade. The conditionality attached to this assistance often encourages necessary economic reforms.

Capacity development involves offering advice and technical assistance to help countries build their institutional and human resource capacities. This support ensures that countries can effectively manage their economies and implement sound financial practices.

The other options presented do not accurately reflect the primary roles of the IMF. For instance, trade facilitation and humanitarian aid fall more under the purview of organizations like the World Trade Organization and various NGOs, respectively. Similarly, global governance and environmental protection tend to be the focus of multinational agreements and environmental organizations, rather than the IMF