Solution:It was established on December 27. 1945 as an independent international organisation. It began operations on March 1, 1947. Its relationship with the UN is defined in a agreement of mutual co-operation, which came into force on November 15, 1947.Its purposes are:
i. to promote exchange stability and prevent unnecessary exchange depreciations.
ii. to assist in the establishment of multilateral system of payments.
iii. to facilitate growth of international trade.
iv. to ultimately eliminate foreign exchange restrictions.
The first amendment to the Fund's articles creating the Special Drawing Rights (SDR) took effect on July 28, 1969 and the second amendment on April 1, 1978.