Final answer:
The IMF was established at the Bretton Woods Conference in July 1944. The IMF and the World Bank were created to rebuild war-torn Europe and Asia, maintain monetary stability, and promote economic development. The IMF began operations in 1946, offering financial assistance and policy advice to member countries.
Step-by-step explanation:
The International Monetary Fund (IMF) was established at Bretton Woods in July 1944. Delegates from forty-four allied nations convened at the Mount Washington Hotel in Bretton Woods, New Hampshire, to establish a new financial order intended to stabilize the post-war global economy and prevent future economic crises. Key institutions including the IMF and the World Bank were created with the goal of rebuilding war-torn Europe and Asia, maintaining monetary stability, and supporting economic development.
The IMF started operations in 1946 after the Bretton Woods agreement was ratified by a sufficient number of countries. Its objective was to promote global monetary cooperation, secure financial stability, facilitate international trade, support high employment and sustainable economic growth, and reduce poverty around the world. Today, it continues to support countries facing serious economic challenges by providing financial resources and policy advice.
Alongside the IMF, the World Bank was also established, focusing on financing reconstruction efforts after World War II. Notably, its first loan was to France. The World Bank later expanded its goals to include funding development projects in various sectors worldwide, shifting away from Europe after the Marshall Plan took over much of the reconstruction effort there.