(A) deficit financing
(B) credit
(C) member nations
(D) borrowing
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The capital of the IMF is made up of contributions from its member nations. These contributions are known as quotas and are based on a country’s economic and financial position.
All members of the International Monetary Fund are also members of the International Bank for Reconstruction and Development. Quotas provide the IMF with the resources it needs to finance its activities, such as providing loans to countries facing payment imbalances or other financial difficulties.
The IMF also borrows funds from its members and other international sources on a concessional basis. The total amount of capital available to the IMF is determined at the conclusion of a conference that reviews the adequacy of its resources.
At its conclusion, the conference attendees produce the Articles of Agreement for the International Bank for Reconstruction and Development (IBRD) and the IMF, which set out the terms and conditions for the use of their respective resources.