Candidates did not have good knowledge of the two economic and financial institutions as a result of that they performed poorly in this question.
The expected answers include:
Objectives of International Monetary Fund (IMF)
(i) To provide International Monetary Cooperation.
(ii) To encourage the expansion of International Trade.
(iii) To encourage stabilization of exchange rate.
(iv) To make resources (Foreign Currency or gold) available from a fund to any member country to enable it correct balance of payment problems etc.
Objectives of European Economic Community (EEC)
[Now European Union (EU) or European Community (EC)]
(i) To eliminate all tariffs and quotas between member countries.
(ii) To establish a common external tariff on all goods imported from outside the EEC.
(iii) To encourage the free movements of service, capital and people.
(iv) To evolve common policies for agriculture transport and communication.
(v) To stabilize currency fluctuation among EU countries etc.
