UPSC Prelims 2020— Question 27

This question tests imf reserve tranche. The key concept is: The IMF reserve tranche position represents a member's readily available claim on the Fund within the quota framework. It is not a World Bank loan or a WTO credit system. The term belongs to the IMF's balance-of-payments support architecture. The verified answer for the uploaded Set-B paper is option D. Option A — a loan system of the World Bank: This is not the correct option. The option does not match the verified combination or conclusion. The decisive point is the distinction explained above: The IMF reserve tranche position represents a member's readily available claim on the Fund within the quota framework. It is not a World Bank loan or a WTO credit system. The term belongs to the IMF's balance-of-payments support architecture. Therefore this alternative should be eliminated even if part of its wording appears plausible in isolation. Option B — one of the operations of a Central Bank: This is not the correct option. The option does not match the verified combination or conclusion. The decisive point is the distinction explained above: The IMF reserve tranche position represents a member's readily available claim on the Fund within the quota framework. It is not a World Bank loan or a WTO credit system. The term belongs to the IMF's balance-of-payments support architecture. Therefore this alternative should be eliminated even if part of its wording appears plausible in isolation. Option C — a credit system granted by WTO to its members: This is not the correct option. The option does not match the verified combination or conclusion. The decisive point is the distinction explained above: The IMF reserve tranche position represents a member's readily available claim on the Fund within the quota framework. It is not a World Bank loan or a WTO credit system. The term belongs to the IMF's balance-of-payments support architecture. Therefore this alternative should be eliminated even if part of its wording appears plausible in isolation. Option D — a credit system granted by IMF to its members: This is the correct option. It matches the verified conclusion because The IMF reserve tranche position represents a member's readily available claim on the Fund within the quota framework. It is not a World Bank loan or a WTO credit system. The term belongs to the IMF's balance-of-payments support architecture. The wording of the option is consistent with the governing concept tested by the question. For UPSC-style elimination, first identify the exact proposition being tested, then evaluate each statement independently before comparing the answer codes. Avoid treating a broad or absolute statement as correct merely because its general theme is familiar. The precise qualifiers in the question—such as 'all', 'only', 'cannot', 'largest', 'always' or a specific institutional role—often determine the answer. On that basis, option D is the verified answer.