The Bretton Woods system, established in 1944, aimed to stabilize the international monetary system in the aftermath of World War II. Which of the following statements best describes the role of the International Monetary Fund (IMF) within the Bretton Woods framework?
1
The IMF provided long-term loans to developing countries to support their industrialization efforts and economic development projects.
2
The IMF acted as a lender of last resort, providing short-term financial assistance to member countries facing balance of payments crises to stabilize their currencies.
3
The IMF regulated international trade and set tariff levels to promote free trade and prevent protectionism among member states.
4
The IMF facilitated debt relief initiatives and restructuring programs to alleviate the debt burdens of heavily indebted countries.