The tool that International Development Association (IDA) uses to address the impact of severe natural disasters, public health emergencies by providing extra finances is known as:

Correct option is C

The tool used by the International Development Association (IDA) to address severe natural disasters and public health emergencies by providing extra finances is known as Crisis Response Window (CRW). The Crisis Response Window (CRW) is a financial mechanism of the IDA that offers additional resources to address the impacts of extreme events like natural disasters, health emergencies, or economic crises in IDA-eligible countries. It is designed to provide timely financial support to mitigate the immediate effects of such crises and help countries recover and rebuild.
Information Booster:
The CRW is a part of the World Bank Group's efforts to enhance resilience and support its member countries during crises. It complements other IDA allocations and allows quick access to additional funding. CRW funds are often used to rebuild infrastructure, restore public services, and finance recovery programs.
Additional Knowledge:
· (a) Emergency Response Fund (ERF): This term is used in various contexts and may refer to a reserve set aside for emergency situations, but it is not specifically associated with the IDA.
· (b) Long-term Lending System: Refers to standard mechanisms of providing developmental loans with extended repayment periods, but it does not focus on crisis management.
· (d) Monetary Fund: While international monetary funds like the IMF provide financial support, they are not the same as the Crisis Response Window of the IDA. The IMF focuses on global economic stability rather than direct responses to natural disasters or health emergencies.