Q: (IAS/2020)
question_subject:
Economics
question_exam:
IAS
stats:
0,261,69,21,21,27,261
keywords:
{'gold tranche': [0, 0, 0, 1], 'reserve tranche': [0, 0, 0, 1], 'world bank': [0, 1, 0, 3], 'central bank': [0, 0, 1, 2], 'credit system': [0, 0, 0, 1], 'loan system': [0, 0, 0, 1], 'wto': [0, 1, 1, 1], 'imf': [0, 1, 2, 0]}
Gold Tranche (Reserve Tranche) refers to a credit system granted by the International Monetary Fund (IMF) to its member countries. The Reserve Tranche is an arrangement in which member countries of the IMF are allowed to hold a certain amount of its own currency or gold without any interest or service charges. This can be used in times of emergency, such as balance of payments difficulties or a global financial crisis, to help the country meet its foreign exchange obligations.