“Gold Tranche” (Reserve Tranche) refers to
This questions was previously asked in
UPSC CSP Previous Year Paper (2020)
A loan system of the World bank
Incorrect AnswerOne of the operations of a central bank
Incorrect AnswerA credit system granted by WTO to its members
Incorrect AnswerA credit system granted by IMF to its members
Correct AnswerExplanation:
Gold Tranche refers to the amount of gold that each member country of the International Monetary fund (IMF) contributes as part of its membership obligations to the fund, and can readily borrow when facing economic difficulties. This portion of the required quota of currency each member country must provide to the International Monetary Fund (IMF) that can be utilized for its own purposes—without a service fee or economic reform conditions. Hence option 4th is correct.
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By: Abhipedia