Final answer:
The bond issued by an international organization like the IMF is a supranational bond, which supports activities beneficial to member countries and offers a diversification option for investors.
Step-by-step explanation:
The type of bond issued by a multilateral agency such as the International Monetary Fund (IMF) is best described as a supranational bond.
Supranational bonds are issued by international organizations, like the IMF, that operate above the national level and have multiple countries as members.
These bonds are used to fund activities and programs that benefit the member countries and are considered a way for investors to diversify their portfolios and support international initiatives.