What is the main purpose of the International Monetary Fund (IMF)?

The main purpose of the International Monetary Fund (IMF) is to promote international monetary cooperation and exchange rate stability, which directly aligns with enhancing the stability of major currencies. By fostering monetary cooperation, the IMF aims to facilitate smooth and stable international trade. This stability helps countries manage their economies and trade relationships more effectively, ultimately contributing to global economic growth.

The IMF also provides member countries with financial resources and advice, particularly when they face balance of payments problems. However, its primary focus lies in maintaining exchange rate stability and promoting sustainable economic growth through its support of trade and financial stability. This includes monitoring global economic trends and providing a platform for economic policy dialogue among its member states.

Other options do not accurately reflect the IMF’s core mission. For instance, regulating international shipping practices is not a function of the IMF, nor does the IMF provide loans without conditions—loans typically come with economic conditions meant to ensure effective use of funds. Lastly, the IMF does not impose economic sanctions; instead, it works towards financial assistance and stability.