Q1. The recent IMF loan to India will help immediately
(a) To meet the expenditure of 20-point programme
(b) To meet the expenditure of Sixth Five-Year Plan
(c) To correct the adverse balance of payments
(d) To remove poverty in India
(UPSC Prelims 1981)
Answer: (c)
Explanation: The IMF loan is primarily aimed at stabilizing the economy by addressing the adverse balance of payments, which occurs when a country’s imports exceed exports, leading to a foreign exchange deficit. Such loans are intended to restore financial equilibrium, not to fund development programmes or poverty alleviation directly.