Which of the following international organizations is concerned with the stabilization of the balance of payments? the

Step 1: Analyze the question The question asks which international organization deals with stabilizing the balance of payments (BOP). The BOP is a record of all economic transactions between a country and the rest of the world. A deficit or surplus that gets out of control can cause currency crises.

Step 2: Explain the concept Each organization has a distinct role:

• IMF (International Monetary Fund): Promotes international monetary cooperation and exchange rate stability. It gives short-term financial help to member countries facing balance of payments problems.
• World Bank (IBRD): Provides long-term loans for development projects such as roads, power, schools and agriculture. It is not focused on short-term BOP problems.
• UNO: Promotes world peace, security and cooperation. It is not a financial stabilizer.
• ECA: Promotes economic cooperation and development within Africa. It does not lend to correct BOP problems.

Step 3: Solution Matching the function to the organization:

• Stabilizing the balance of payments means short-term support for countries with deficits, which is the job of the IMF.
• Long-term development lending belongs to the World Bank, so B is wrong.
• UNO and ECA have political and regional development roles, so C and D are wrong.

Step 4: Answer The correct option is A. International Monetary Fund (IMF).

Step 5: Exam tip Remember: IMF = Money and short-term BOP help; World Bank = Building long-term development projects. Both start with "M" and "B" for easy recall.