question_answer

      International Monetary Fund (IMF) argues that developing economies hold a massive stockpile of foreign exchange.

Which could be the consequences of such stockpiling?

1. A trade imbalance or major difference in value of imports/exports is generated between the developing and emerging economies and the rich countries.

2. Such an imbalance is not a healthy sign.

These imbalances have caused the current global economic crisis.

3. Such stockpiling is responsible not only for problems in trade balances but leads to money laundering.

A) 1 only            

B) 2 only

C) 3 only            

D) 1, 2 and 3