UPSC Prelims 2022 Question:

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

Explanation:

• The Rapid Financing Instrument (RFI): It is a lending facility of the International Monetary Fund (IMF) which provides rapid financial assistance. It is available to all member countries facing an urgent balance of payments need. The RFI was created as part of a broader reform to make the IMF’s financial support more flexible to address the diverse needs of member countries. The RFI replaced the IMF’s previous emergency assistance policy and can be used in a wide range of circumstances.
  
  
• IMF’s Rapid Credit Facility (RCF) provides rapid concessional financial assistance to low-income countries (LICs) facing an urgent balance of payments (BoP) need with no ex-post conditionality where a full-fledged economic program is neither necessary nor feasible.
  
  

Therefore, option (2) is the correct answer.

Subject: Economics| Economic Organisations and Conventions