{"id":28136,"date":"2024-02-19T08:14:48","date_gmt":"2024-02-19T08:14:48","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=28136"},"modified":"2024-02-19T08:20:45","modified_gmt":"2024-02-19T08:20:45","slug":"upsc-prelims-2022-question-1","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/upsc-prelims-2022-question-1\/","title":{"rendered":"UPSC Prelims 2022 &#8211; Question 1"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-prelims-test-series?utm_source=Blog&amp;utm_medium=Blog&amp;utm_campaign=Blog-%20PTS\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/02\/Prelims-Test-Series-eng-and-hindi-1280\u00d7330.svg\" alt=\"UPSC Prelims Mock Test - ECONOMY 2\" class=\"wp-image-24924\" width=\"779\" height=\"199\"\/><\/a><\/figure>\n\n\n\n<p>Here is  Question No. 1 a part of our series on UPSC Prelims 2022.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6a609c4d0055b\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a609c4d0055b\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/upsc-prelims-2022-question-1\/#Q1_%E2%80%9CRapid_Financing_Instrument%E2%80%9D_and_%E2%80%9CRapid_Credit_Facility%E2%80%9D_are_related_to_the_provisions_of_lending_by_which_one_of_the_following\" >Q1. \u201cRapid Financing Instrument\u201d and \u201cRapid Credit Facility\u201d are related to the provisions of lending by which one of the following?<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q1_%E2%80%9CRapid_Financing_Instrument%E2%80%9D_and_%E2%80%9CRapid_Credit_Facility%E2%80%9D_are_related_to_the_provisions_of_lending_by_which_one_of_the_following\"><\/span>Q1. \u201cRapid Financing Instrument\u201d and \u201cRapid Credit Facility\u201d are related to the provisions of lending by which one of the following?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>a) Asian Development Bank<br>b) International Monetary Fund<br>c) United Nations Environment Programme Finance Initiative<br>d) World Bank<\/p>\n\n\n\n<p>Answer (b) <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>\u201cRapid Financing Instrument\u201d and \u201cRapid Credit Facility\u2019\u2019 are initiatives of the IMF.<\/li><li>The Rapid Financing Instrument (RFI): The RFI was created as part of a broader reform to make the IMF\u2019s financial support more flexible to address the diverse needs of member countries. It provides rapid and low-access financial assistance to any qualifying member country facing urgent balance of payments needs that, if not addressed, would result in an immediate and severe economic disruption. It can provide support to meet a broad range of needs, including those arising from commodity price shocks, natural disasters, conflict and postconflict situations, emergencies resulting from fragility, and food shocks. Like the RCF, the RFI is designed for situations where a full-fledged economic program is not necessary because the need is transitory and limited in nature, or not feasible because a country\u2019s policy design or implementation capacity is limited.<\/li><li>The Rapid Credit Facility (RCF): The RCF is available to PRGT-eligible member countries that face an urgent balance of payments. The RCF is designed for situations where a full-fledged economic program is either not necessary because of the transitory and limited nature of the shock, or not feasible because of capacity constraints or domestic fragilities. For higher-income countries that are non-PRGT eligible, a similar Rapid Financing Instrument (RFI) is available. It provides concessional, rapid, and low-access financial assistance to qualifying LICs facing an urgent balance of payments need, without ex-post conditionality.<\/li><li><strong>Additional Info:<\/strong><\/li><li><strong>There are three windows under the RFI:<\/strong> Regular window: for urgent BoP needs caused by a wide range of sources including domestic instability, exogenous shocks, and fragility.<\/li><li><strong>Large Natural Disaster window:<\/strong> for urgent BoP needs arising from natural disasters where damage is assessed to be equivalent to or exceeds 20 percent of the member\u2019s GDP.<\/li><li><strong>Food Shock Window: <\/strong>for urgent BoP needs due to acute food insecurity, a sharp increase in the food or fertilizer import bill, or a shock to cereal exports.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Essay\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/UPSC-Essay-Course-1280\u00d7300-1-3.svg\" alt=\"\" class=\"wp-image-42688 lazyload\" width=\"781\" height=\"182\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 781px; --smush-placeholder-aspect-ratio: 781\/182;\" \/><\/a><\/figure>\n\n\n\n<p>For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p>For Daily Updates and Study Material:<\/p>\n\n\n\n<p>Join our Telegram Channel \u2013&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>1. Learn through Videos \u2013&nbsp;<a href=\"https:\/\/bit.ly\/3vOD8sU\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>2. Be Exam Ready by Practicing Daily MCQs \u2013&nbsp;<a href=\"https:\/\/bit.ly\/3Q9z2nF\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>3. Daily Newsletter \u2013 Get all your Current Affairs Covered \u2013&nbsp;<a href=\"https:\/\/bit.ly\/3bE2y5J\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>4. Mains Answer Writing Practice \u2013&nbsp;<a href=\"https:\/\/bit.ly\/3mZuVxl\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><\/ul>\n\n\n\n<p>Visit our YouTube Channel \u2013&nbsp;<a href=\"https:\/\/www.youtube.com\/@ShabbirsEduKemyforIAS\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Q1. \u201cRapid Financing Instrument\u201d and \u201cRapid Credit Facility\u201d are related to the provisions of lending by which one of the following?<\/p>\n<p>a) Asian Development Bank<\/p>\n","protected":false},"author":17,"featured_media":28137,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[1644],"tags":[232,515,231],"class_list":["post-28136","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-upsc-prelims","tag-upsc","tag-upsc-cse","tag-upsc-prelims"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.9 - aioseo.com -->\n\t<meta name=\"description\" content=\"Q1. \u201cRapid Financing Instrument\u201d and \u201cRapid Credit Facility\u201d are related to the provisions of lending by which one of the following? 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