Explanation

The Reserve Tranche (historically termed the Gold Tranche) is a specialized liquidity drawing mechanism provided by the International Monetary Fund (IMF) to its member nations:

– Each member country contributes a designated quota upon joining the IMF, partly paid in reserve currencies/SDRs and partly in domestic currency.
– The reserve tranche represents the proportion of a member country’s quota that can be accessed and withdrawn on demand without service fees, economic reform conditionality, or interest charges.
– It serves as a facility of first resort when a nation experiences temporary balance-of-payments difficulties before entering into formal conditional loan arrangements with the IMF.

Therefore, Gold Tranche refers to a credit system granted by IMF to its members — Option D.