Which of these is a key function of the International Monetary Fund (IMF)?

The International Monetary Fund (IMF) plays a crucial role in providing financial assistance to countries facing economic difficulties. This assistance is typically in the form of loans that help stabilize national economies during times of crisis, such as balance of payments issues or extreme economic downturns. By offering financial support, the IMF aims to restore economic stability and promote sustainable growth, which is vital for the economic health of individual countries and the global economy as a whole.

The other functions mentioned, while relevant to global financial stability, do not encapsulate the primary purpose of the IMF. For instance, facilitating trade agreements and setting currency exchange rates fall more within the realm of trade organizations and central banks, respectively. Although the IMF does engage in discussions on global economic policies, its key function is distinctly focused on providing financial assistance to ensure stability.