Final answer:
The IMF, founded in 1944, acts as a lender of last resort to countries in economic distress, originally to help rebuild after World War II and now to foster global monetary stability. It imposes conditions on loans that may dictate economic policies in recipient countries. Its role has adapted over time to focus on preventing financial crises and promoting international trade.
Step-by-step explanation:
The International Monetary Fund (IMF) is an intergovernmental organization that acts as a lender of last resort. This means that countries turn to the IMF for financial support only after they have exhausted all other funding options. The IMF was founded in 1944 with the original purpose of rebuilding countries after World War II. Over time, its focus has shifted to promoting global monetary stability and economic improvement for its member countries.
Member states on the IMF's Board of Governors offer support to struggling countries based on the role that those countries play within the global economy. The IMF also provides monetary resources that countries can access during financial difficulties. However, it is known for attaching conditions to its loans that may require the adoption of certain economic policies, such as privatizing public services and debt repayment.
The IMF's role has evolved since its inception. With the collapse of fixed exchange rates, its focus moved to using conditionality and offering advice to help debtor nations avoid or mitigate financial crises, promote fiscal balance, and encourage participation in the international flow of goods and services.