General Agreements To Borrow - GAB


DEFINITION of 'General Agreements To Borrow - GAB'

A borrowing/lending medium for members of the Group of Ten. Members of the lending country deposit funds into the International Monetary Fund (IMF), which are made available to be withdrawn by the borrowing member in need. One of the advantages of this is that each country deals in their own currency, leaving all conversions to the IMF.

BREAKING DOWN 'General Agreements To Borrow - GAB'

The Group of Ten is comprised of Japan, France, Germany, Sweden, The United Kingdom, Japan, Italy, Belgium, the Netherlands, the United States and Canada. Switzerland is the most recent member. They meet yearly to discuss political, financial and economic situations.

  1. International Monetary Fund - IMF

    An international organization created for the purpose of standardizing ...
  2. Balance Of Payments (BOP)

    A record of all transactions made between one particular country ...
  3. Economics

    A social science that studies how individuals, governments, firms ...
  4. Special Drawing Rights - SDR

    An international type of monetary reserve currency, created by ...
  5. Group of Ten - G10

    Eleven industrialized nations that meet on an annual basis to ...
  6. Currency Convertibility

    The ease with which a country's currency can be converted into ...
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