<type name="Klarna\Core\Model\System\Config\Source\Base">
    <arguments>
        <argument name="config" xsi:type="object">
            Klarna\Core\Config\Virtual
        </argument>
    </arguments>
</type>

This is a type configuration.

This configuration is for the base area. Base area configurations will apply to all the sub-applications.

This configuration tells the Object Manager that when a user wants a Klarna\Core\Model\System\Config\Source\Base object that the following arguments should be used in the foo object's constructor.

• $config = new Klarna\Core\Config\Virtual (...)