UPSC 2022EconomyModerate

"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
Correct Answer
C
United Nations Environment Programme Finance Initiative
D
World Bank

Explanation

The Rapid Financing Instrument (RFI) and Rapid Credit Facility (RCF) are emergency lending mechanisms of the International Monetary Fund (IMF) designed to provide quick financial assistance to member countries facing urgent balance of payments needs. While the World Bank also provides emergency funding, its instruments focus on long-term structural reforms and project-based financing rather than the immediate, low-conditionality liquidity support characteristic of these specific IMF facilities. This question tests the core concept of international financial architecture and the specialized roles of global monetary institutions in crisis management.

International Financial InstitutionsIMF Lending InstrumentsRapid Financing InstrumentRapid Credit Facilitylending provisionsAsian Development BankInternational Monetary FundUnited Nations Environment Programme Finance InitiativeWorld Bank

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