"Gold Tranche" (Reserve Tranche) refers to
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Answer: D. The reserve tranche (earlier called gold tranche) is the part of a member's IMF quota paid in reserve assets. A member can draw it from the IMF at any time without conditions or interest. So it is a credit facility of the IMF.
Watch for: Because it counts in India's forex reserves held by RBI, students think it is a central bank operation.
Why the other options are wrong
- A. Wrong because the World Bank gives development loans, not tranches from quotas.
- B. Wrong because it is an IMF arrangement, not a central bank operation.
- C. Wrong because the WTO is a trade body and does not lend.
Source to check: IMF website (imf.org, 'IMF Quotas' and financial operations); RBI Weekly Statistical Supplement (forex reserves components)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.