Question

Which organisation provided financial support to India during the 1991 economic crisis?

• A. United Nations
• B. World Trade Organization
• C. International Monetary Fund
• D. Asian Development Bank

Answer 1

Answer:

C. International Monetary Fund

The International Monetary Fund (IMF) provided financial support to India during the 1991 economic crisis. India had to secure an emergency loan of 2.2 billion dollar from the International Monetary Fund by pledging 67 tonnes of Gold as collateral security. In May 1991, India sent 20 tonnes of Gold to Union Bank of Switzerland, Zurich and in July, 47 tonnes of Gold was given to Bank of England to raise a total of 600 million dollar.