2020 GS Paper I, all questions
UPSC Prelims 2020 · GS Paper I
Question 17: Economy and Social Development
“Gold Tranche” (Reserve Tranche) refers to
aa loan system of the World Bank
bone of the operations of a Central Bank
ca credit system granted by WTO to its members
da credit system granted by IMF to its members
AnswerUPSC’s answer is (d).
The reserve tranche, earlier called the gold tranche, is the portion of a member's quota in the IMF that was paid in reserve assets (originally gold). The member can draw on it at any time without conditions, charges or a duty to repay, so it works as a credit facility the IMF gives its members. It is not a World Bank loan, a WTO credit scheme or a central bank operation.
Why each option is right or wrong
- (a) Wrong: the World Bank lends for development projects and does not run this facility.
- (b) Wrong: it is a right of IMF members, not a routine central bank operation.
- (c) Wrong: the WTO sets trade rules and grants no credit of this type.
- (d) Right: it is a credit facility available to IMF members.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2020, General Studies Paper I, Series A. The paper on upsc.gov.in.