Option 1 -> The International Monetary System is the framework governing exchange rates and international payments.
Option 2 -> IMF is an institution within the international monetary system, not the system itself.
Option 3 -> Central Banks manage national currencies, not the overall international monetary framework.
Option 4 -> World Bank focuses on development financing, not currency stability.
Hence, International Monetary System -> The International Monetary System is the comprehensive framework that encompasses rules, institutions, mechanisms, and procedures regulating international financial transactions. It addresses currency credibility through exchange rate mechanisms, international liquidity, and balance of payments adjustments. This system includes institutions like the IMF, but represents the broader structure that ensures stability and confidence in cross-border monetary exchanges. -> correct