Economics • Banking & FinanceMedium
What does 'SDR (Special Drawing Rights)' represent in the international monetary system?
A. A physical gold coin issued by the World Bank for bilateral trade.
B. An international reserve asset created by the International Monetary Fund (IMF) allocated to its member countries.✓ Correct Answer
C. A specialized debt instrument issued by the European Central Bank.
D. A foreign exchange swap agreement between central banks and commercial banks.
💡 Solution & Explanation
Special Drawing Rights represent an international reserve asset created by the International Monetary Fund in 1969 to augment member countries' official foreign reserves. They are not physical coins or bilateral trade instruments.
More Economics Banking & Finance questions
- Evaluate the objectives of Basel III capital adequacy norms implemented across international banking systems.…
- Which financial metric evaluates the proportion of total deposits that commercial bank branches in Haryana…
- In the context of microfinance and Self-Help Group bank linkage programs in Chhattisgarh, what is the primary…
- Consider the operation of the Prompt Corrective Action framework administered by the Reserve Bank of India…
- What is the statutory requirement mandated by the Cash Reserve Ratio (CRR) for scheduled commercial banks in…