UPSC Previous Year Question | Prelims GS | 2020

'Gold Tranche' (Reserve Tranche) refers to

  1. a loan system of the World Bank
  2. one of the operations of a Central Bank
  3. a credit system granted by WTO to its members
  4. a credit system granted by IMF to its members

Answer

Correct Answer

a credit system granted by IMF to its members

Explanation

The Reserve (Gold) Tranche is the part of a member's quota at the IMF that it can draw on freely, without conditions or charges. It is treated as a facility of first resort.

Topics: economy, external sector & international institutions, international monetary fund (imf), reserve/gold tranche