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Consider the following statements regarding Extended Fund Facility (EFF).
- The Extended Fund Facility (EFF) is a lending facility of the International Monetary Fund (IMF).
- It mainly provides assistance to countries for fulfilling developmental needs.
- Amounts drawn under an EFF can be repaid over 5 to 10 years in instalments.
Which of the above statements is/are correct?
- a)1, 2
- b)1, 3
- c)2, 3
- d)1, 2, 3
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding Extended Fund Facility (EF...
The correct answer is option 'B' which means statements 1 and 3 are correct.
Explanation:
Extended Fund Facility (EFF) is a lending facility provided by the International Monetary Fund (IMF). Let us analyze each statement to understand why the answer is option 'B':
1. The Extended Fund Facility (EFF) is a lending facility of the International Monetary Fund (IMF).
The first statement is correct. The Extended Fund Facility (EFF) is a type of financial support provided by the International Monetary Fund (IMF) to its member countries. It is designed to assist countries in implementing medium-term structural reforms and policies to address their balance of payments problems.
2. It mainly provides assistance to countries for fulfilling developmental needs.
The second statement is incorrect. The EFF is not primarily aimed at fulfilling developmental needs. Its main objective is to help countries overcome balance of payments difficulties and implement necessary reforms to restore macroeconomic stability. It focuses on medium-term structural reforms rather than short-term developmental needs.
3. Amounts drawn under an EFF can be repaid over 5 to 10 years in installments.
The third statement is correct. When a country borrows funds under the Extended Fund Facility (EFF), it is given a specific period to repay the borrowed amount. This repayment period generally ranges from 5 to 10 years, and the repayment is made in installments. This allows the borrowing country to gradually repay the loan over an extended period of time.
Hence, based on the analysis of each statement, the correct answer is option 'B' - statements 1 and 3 are correct.
Explanation:
Extended Fund Facility (EFF) is a lending facility provided by the International Monetary Fund (IMF). Let us analyze each statement to understand why the answer is option 'B':
1. The Extended Fund Facility (EFF) is a lending facility of the International Monetary Fund (IMF).
The first statement is correct. The Extended Fund Facility (EFF) is a type of financial support provided by the International Monetary Fund (IMF) to its member countries. It is designed to assist countries in implementing medium-term structural reforms and policies to address their balance of payments problems.
2. It mainly provides assistance to countries for fulfilling developmental needs.
The second statement is incorrect. The EFF is not primarily aimed at fulfilling developmental needs. Its main objective is to help countries overcome balance of payments difficulties and implement necessary reforms to restore macroeconomic stability. It focuses on medium-term structural reforms rather than short-term developmental needs.
3. Amounts drawn under an EFF can be repaid over 5 to 10 years in installments.
The third statement is correct. When a country borrows funds under the Extended Fund Facility (EFF), it is given a specific period to repay the borrowed amount. This repayment period generally ranges from 5 to 10 years, and the repayment is made in installments. This allows the borrowing country to gradually repay the loan over an extended period of time.
Hence, based on the analysis of each statement, the correct answer is option 'B' - statements 1 and 3 are correct.
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Consider the following statements regarding Extended Fund Facility (EFF). The Extended Fund Facility (EFF) is a lending facility of the International Monetary Fund (IMF). It mainly provides assistance to countries for fulfilling developmental needs. Amounts drawn under an EFF can be repaid over 5 to 10 years in instalments.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements regarding Extended Fund Facility (EFF). The Extended Fund Facility (EFF) is a lending facility of the International Monetary Fund (IMF). It mainly provides assistance to countries for fulfilling developmental needs. Amounts drawn under an EFF can be repaid over 5 to 10 years in instalments.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Extended Fund Facility (EFF). The Extended Fund Facility (EFF) is a lending facility of the International Monetary Fund (IMF). It mainly provides assistance to countries for fulfilling developmental needs. Amounts drawn under an EFF can be repaid over 5 to 10 years in instalments.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Extended Fund Facility (EFF). The Extended Fund Facility (EFF) is a lending facility of the International Monetary Fund (IMF). It mainly provides assistance to countries for fulfilling developmental needs. Amounts drawn under an EFF can be repaid over 5 to 10 years in instalments.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'B'. Can you explain this answer?.
Consider the following statements regarding Extended Fund Facility (EFF). The Extended Fund Facility (EFF) is a lending facility of the International Monetary Fund (IMF). It mainly provides assistance to countries for fulfilling developmental needs. Amounts drawn under an EFF can be repaid over 5 to 10 years in instalments.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Extended Fund Facility (EFF). The Extended Fund Facility (EFF) is a lending facility of the International Monetary Fund (IMF). It mainly provides assistance to countries for fulfilling developmental needs. Amounts drawn under an EFF can be repaid over 5 to 10 years in instalments.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Extended Fund Facility (EFF). The Extended Fund Facility (EFF) is a lending facility of the International Monetary Fund (IMF). It mainly provides assistance to countries for fulfilling developmental needs. Amounts drawn under an EFF can be repaid over 5 to 10 years in instalments.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'B'. Can you explain this answer?.
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Consider the following statements regarding Extended Fund Facility (EFF). The Extended Fund Facility (EFF) is a lending facility of the International Monetary Fund (IMF). It mainly provides assistance to countries for fulfilling developmental needs. Amounts drawn under an EFF can be repaid over 5 to 10 years in instalments.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Consider the following statements regarding Extended Fund Facility (EFF). The Extended Fund Facility (EFF) is a lending facility of the International Monetary Fund (IMF). It mainly provides assistance to countries for fulfilling developmental needs. Amounts drawn under an EFF can be repaid over 5 to 10 years in instalments.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Consider the following statements regarding Extended Fund Facility (EFF). The Extended Fund Facility (EFF) is a lending facility of the International Monetary Fund (IMF). It mainly provides assistance to countries for fulfilling developmental needs. Amounts drawn under an EFF can be repaid over 5 to 10 years in instalments.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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