49. The International Monetary Fund was established as part of the Bretton Woods Agreement to promote economic development through short-term loans to developing countries. Solution ans.. 49. It is TRUE.. The IMF was set up at Bretton Wood agreement in 1944. The main function of IMF is to provide countries to short term BOP problems, providing short term credit, maintaining stability in exchange rate, serving as middle man in case of member country wants to borrow funds from another..