gs1medium

"Gold Tranche" (Reserve Tranche) refers to

  1. A.a loan system of the World Bank
  2. B.one of the operations of a Central Bank
  3. C.a credit system granted by WTO to its members
  4. D.a credit system granted by IMF to its members
▶ Answer & Explanation

Correct answer: D. a credit system granted by IMF to its members

The Reserve Tranche, often referred to as the Gold Tranche, represents a country's quota contribution to the International Monetary Fund (IMF) that can be drawn upon without any questions asked. It is an unconditional drawing right. This facility is designed to provide immediate balance of payments support to member countries.

Source: UPSC gs1 2020

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