The IMF's Policy Support Instrument (PSI) provides non-financial policy advice and endorsement for countries that do not need or want IMF financing but seek to signal policy credibility to markets, donors, and the public through IMF _____ of their economic programs.
- approval
- endorsement
- funding
- audit
Answer: endorsement
PSI offers regular consultations and public statements of support for countries' home-grown reform programs. This 'seal of approval' can lower borrowing costs, attract investment, and strengthen domestic reform momentum without creating debt obligations.