Which of the Following Is True of the IMF's Credit

question 39

Multiple Choice

Which of the following is true of the IMF's credit tranche?

• A) Each credit tranche is equivalent to 50 percent of the member's quota.
• B) A member is entitled to four credit tranches.
• C) A credit tranche cannot be used to make balance-of-payments.
• D) All credit tranches are subject to similar rules or conditions.

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Definitions:

Monopolist

An entity with exclusive control over the supply of a particular good or service, setting prices and production levels.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different customers.

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, freedom of entry and exit, and perfect information, leading to firms being price takers.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers.