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Q1·GS Paper 1 · Prelims 2022

International financial instruments for lending

EconomyInternational Institutions & OrganisationsFactual singleMediumStatic

Question

"Rapid Financing Instrument" and "Rapid Credit Facility" are related to the provisions of lending by which one of the following?

Options

a

Asian Development Bank

b

International Monetary Fund

Answer
c

United Nations Environment Programme Finance Initiative

d

World Bank

Explanation

The Rapid Financing Instrument (RFI) and Rapid Credit Facility (RCF) are emergency financial assistance facilities provided by the International Monetary Fund (IMF) to member countries facing urgent balance of payments needs.

Emergency lending windows like the RFI and RCF are classic IMF tools designed specifically for rapid balance of payments crises.

Answer: (b).

Question details

Year

2022

Paper

GS Paper 1

Question

Q1

Subject

Economy

Sub-topic

International Institutions & Organisations

Type

Factual single

Difficulty

Medium

Nature

Static

Source hint

IMF Emergency Financing Facilities / Rapid Credit Facility

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