Final answer:
The International Monetary Fund (IMF) plays a key role in exchange rate determination, assisting with international monetary cooperation, and stabilizing currencies which impacts global economic conditions.
Step-by-step explanation:
A key international institution that plays an important role in exchange rate determination is the International Monetary Fund (IMF). The central bank in each country, such as the Federal Reserve in the United States, the European Central Bank, and others, is primarily responsible for monetary policy and ensuring the smooth operation of the nation's financial system. However, the IMF is crucial in facilitating international monetary cooperation and providing advice and funding to help countries stabilize their currencies. When exchange rates are affected, it impacts aggregate demand and international trade. The IMF helps to manage these anomalies and contribute to global financial stability.