Assisting members to solve temporary balance of payments problems is the reasons for the establishment of the

Step 1: Analyze the question The question asks which institution was set up mainly to help member countries deal with temporary balance of payments problems. This is a deficit in a country's international transactions, where it spends more foreign exchange than it earns.

Step 2: Explain the concept Balance of payments (BOP) is the record of all economic transactions between a country and the rest of the world. When a country has a short-term shortfall, it needs foreign currency to pay for imports and debts. Some international institutions exist to lend in such situations.

Step 3: Examine each option

• A. International Monetary Fund (IMF): Established in 1944 (Bretton Woods) to promote international monetary cooperation, exchange rate stability, and balanced growth of trade. It also gives short-term financial assistance to members with temporary BOP difficulties. This matches the question.
• B. Economic Commission for Africa (ECA): A UN regional body that promotes economic and social development in Africa through research and policy advice. It does not lend for BOP problems.
• C. World Bank: Provides long-term loans for reconstruction and development projects (e.g., roads, power, education). Its focus is long-term development, not temporary BOP support.
• D. African Development Bank (AfDB): Finances development projects and provides technical assistance in African countries. It is not mainly for BOP support.

Step 4: Answer The IMF is the institution created to assist members with temporary balance of payments problems.

Step 5: Exam tip Use this memory trick:

• IMF = "Money problems now": short-term BOP support and exchange rate stability.
• World Bank = "Building projects": long-term development loans.

Whenever you see "temporary balance of payments" in an exam, think IMF.