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Q17·GS Paper 1 · Prelims 2020

Gold Tranche / Reserve Tranche

EconomyInternational Days & InstitutionsFactual singleEasyStatic

Question

"Gold Tranche" (Reserve Tranche) refers to

Options

a

a loan system of the World Bank

b

one of the operations of a Central Bank

c

a credit system granted by WTO to its members

d

a credit system granted by IMF to its members

Answer

Explanation

A Reserve Tranche (historically the 'Gold Tranche') refers to the portion of the required quota of currency each member country must provide to the International Monetary Fund (IMF) that can be accessed without a service fee or policy conditions. > One-line conceptual takeaway: The Reserve Tranche Position (RTP) is an emergency credit line available to IMF members based on their quota contributions. Answer: (d).

Question details

Year

2020

Paper

GS Paper 1

Question

Q17

Subject

Economy

Sub-topic

International Days & Institutions

Type

Factual single

Difficulty

Easy

Nature

Static

Source hint

Basic Macroeconomics / IMF functioning

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