Rapid Financing Instrument and "Rapid Credit Facility" are related to the provisions of lending by which one of the following?
Detailed Explanation:
Answer: Option 2 — International Monetary Fund
Both Rapid Financing Instrument (RFI) and Rapid Credit Facility (RCF) are emergency lending facilities provided by the International Monetary Fund (IMF) to member countries facing urgent balance of payments needs. The RFI is available to all IMF member countries requiring rapid financial assistance without the need for a full-fledged program, while the RCF is a concessional lending facility specifically designed for low-income countries that are members of the Poverty Reduction and Growth Trust (PRGT).
📝 Short Notes: IMF Emergency Lending Facilities
| Feature | Rapid Financing Instrument (RFI) | Rapid Credit Facility (RCF) |
|---|---|---|
| Eligibility | All IMF member countries | Low-income countries (PRGT-eligible) |
| Interest Rate | Market-based (non-concessional) | Zero interest rate (concessional) |
| Purpose | Urgent balance of payments needs | Urgent balance of payments needs |
| Conditionality | Minimal, no full program required | Minimal, no full program required |
| Disbursement | Outright, single disbursement | Outright, single disbursement |
Question 1 of 6 International Monetary Fund (IMF)
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“Gold Tranche” (Reserve Tranche) refers to