Question
GSEasyPrelims 2020Economy

“Gold Tranche” (Reserve Tranche) refers to

Explanation

In the context of the International Monetary Fund (IMF), "Gold Tranche" (also referred to as "Reserve Tranche") refers to a specific portion of a member country's quota that can be accessed under specific conditions. Here's a breakdown

International Monetary Fund (IMF): An international organization that works to promote global financial stability and economic cooperation.

Quota: The amount of financial resources a member country is obligated to contribute to the IMF. This contribution is based on the country's economic size and importance in the global trade system.

Reserve Tranche: The first 25% of a member country's quota that can be accessed without needing IMF approval or paying any interest or service charges. It's essentially a readily available credit line.

Hence, option D is the correct answer.

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