| 'Rapid Financing Instrument' and 'Rapid Credit Facility' are related to the provisions of lending by which one of the following ? |
'Rapid Financing Instrument' and 'Rapid Credit Facility' are related to the provisions of lending by the International Monetary Fund (IMF).
The Rapid Financing Instrument (RFI) and the Rapid Credit Facility (RCF) are emergency lending facilities established by the IMF to provide financial assistance to low-income and emerging market countries facing urgent balance of payment needs due to external shocks, natural disasters, conflicts, or other crises.
The RFI provides rapid and low-conditionality financial assistance to member countries, whereas the RCF provides financing on concessional terms with a higher degree of conditionality. These facilities provide immediate access to financial resources to help countries address their urgent balance of payment needs and maintain economic stability.
Therefore, RFI and RCF are provisions of lending by the IMF to provide emergency financial assistance to member countries.
Preparing for Future Exams: Learning from the Analysis of Past Questions
Topics:
- Rapid Financing Instrument
- Rapid Credit Facility
- International Monetary Fund (IMF)
Sources:
- International Monetary Fund (IMF) website: The IMF's website has a section dedicated to its lending facilities, including information on the Rapid Financing Instrument and Rapid Credit Facility.
- "IMF Financial Assistance" chapter in the NCERT Economics textbook for Class XII: This chapter provides an overview of the IMF and its lending facilities.
- "The International Monetary Fund" chapter in the book "International Economics" by Robert J. Carbaugh: This chapter provides a comprehensive overview of the IMF and its lending facilities.
Related topics:
- International finance
- Balance of payments
- Economic crises and their management
- Sovereign debt restructuring