Question map
Not attempted Correct Incorrect ★ Bookmarked
Loading…
Q11 (CDS-I/2012) International Relations & Global Affairs › International Organisations & Groupings › International financial institutions Answer Verified

Special Drawing Rights (SDRs) relate to—

Result
Your answer: —  ·  Correct: D
Explanation

Special Drawing Rights (SDRs) are an international reserve asset created by the International Monetary Fund (IMF) in 1969 [4]. The SDR is not a currency itself but serves as a unit of account for the IMF and other international organizations [3]. Its value is determined by a weighted basket of five major global currencies: the US dollar, euro, Chinese renminbi, Japanese yen, and British pound sterling [4]. SDRs were originally established to supplement member countries' official reserves and are allocated based on each country's IMF quota [4]. While they are part of India's foreign exchange reserves, they are held in the custody of the government rather than the Reserve Bank of India [5]. The IMF facilitates transactions where members can exchange SDRs for freely usable currencies to meet balance of payment needs [3].

Sources

  1. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 18: International Economic Institutions > SPECIAL DRAWING RIGHTS > p. 514
  2. [4] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 16: Balance of Payments > FOREIGN EXCHANGE RESERVES > p. 483
  3. [3] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > Special Drawing Rights (SDR): > p. 398
  4. [5] https://openknowledge.worldbank.org/server/api/core/bitstreams/6143a4ae-da5c-5378-bda6-e9119b9882ac/content
How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
50%
got it right
✓ Thank you! We'll review this.

SIMILAR QUESTIONS

IAS · 2013 · Q58 Relevance score: 3.81

Which one of the following groups of items is included in India’s foreign-exchange reserves?

IAS · 2014 · Q30 Relevance score: -2.92

With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? 1. Balance of trade 2. Foreign assets 3. Balance of invisibles 4. Special Drawing Rights Select the correct answer using the code given below.

IAS · 2007 · Q69 Relevance score: -3.88

Participatory Notes (PNs) are associated with which one of the following?

IAS · 2016 · Q14 Relevance score: -3.93

Recently, which one of the following currencies has been proposed to be added to the basket of IMF's SDR?

IAS · 2022 · Q91 Relevance score: -4.08

"Rapid Financing Instrument" and "Rapid Credit Facility" are related to the provisions of lending by which one of the following ?