GS PrelimsInternational relationsInternational Organizations2022

"Rapid Financing Instrument" and "Rapid Credit Facility" are related to the provisions of lending by which one of the following?

A

Asian Development Bank

B

International Monetary Fund

C

United Nations Environment Programme Finance Initiative

D

World Bank

Correct Answer: Option B

Explanation

1. The question asks to identify the institution associated with the lending instruments: Rapid Financing Instrument (RFI) and Rapid Credit Facility (RCF). 2. Both the RFI and RCF are facilities provided by the International Monetary Fund (IMF). 3. The Rapid Financing Instrument (RFI) provides prompt financial assistance to any member country facing an urgent balance of payments need, without the requirement of a full-fledged economic program. 4. The Rapid Credit Facility (RCF) provides similar rapid concessional financial assistance to low-income countries (LICs) facing an urgent balance of payments need. It is offered on concessional terms (currently zero interest rate). 5. Therefore, these instruments are related to the lending provisions of the International Monetary Fund.

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