Special Drawing Rights (SDRs) relate to

examrobotsa's picture
Q: 11 (CDS-I/2012)
Special Drawing Rights (SDRs) relate to—

question_subject: 

Economics

question_exam: 

CDS-I

stats: 

0,184,79,34,29,16,184

keywords: 

{'special drawing rights': [0, 0, 0, 1], 'sdrs': [0, 0, 0, 2], 'reserve bank': [1, 0, 3, 4], 'international monetary fund': [0, 0, 1, 2], 'world bank': [0, 1, 0, 3], 'india': [8, 1, 7, 13]}

The correct answer is option 4, the International Monetary Fund (IMF). Special Drawing Rights (SDRs) are a type of international reserve asset that are created and allocated by the IMF. SDRs were introduced in 1969 as a way to supplement the existing reserve assets of member countries, such as gold and foreign currencies.

SDRs are essentially a basket of currencies that member countries can use to supplement their own reserves. The value of SDRs is determined by a weighted average of four major currencies: the US dollar, the euro, the Chinese yuan, and the Japanese yen. The weights of these currencies in the SDR basket are reviewed and adjusted every five years to ensure their representation reflects the relative importance of each currency in the global economy.

SDRs are primarily used by central banks and governments for international financial transactions and as a measure of a country`s international reserves. They are not widely used in everyday economic activities like currency notes. While the IMF manages and oversees the use and allocation of SDRs, they are not directly related to the World Bank, the Reserve Bank of India, or the World Trade Organization.

Practice this on app