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The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. Consider the following about Special Drawing Rights (SDR).
1. SDRs cannot be exchanged for freely usable currencies.
2. Value of a SDR is fixed on an annual basis and revised on the discretion of IMF.
Which of the above is/are correct?
1. SDRs cannot be exchanged for freely usable currencies.
2. Value of a SDR is fixed on an annual basis and revised on the discretion of IMF.
Which of the above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)None
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
The SDR is an international reserve asset, created by the IMF in1969 t...
Justification: Statement 1: It was created as a supplementary international
reserve asset.
SDRs can be exchanged for freely usable currencies. So, 1 is wrong.
The value of the SDR is currently based on a basket of four major
currencies: the U.S. dollar, euro, the Japanese yen, and pound sterling. The
basket will be expanded to include the Chinese renminbi (RMB) as the fifth
currency, effective October 1, 2016.
Statement 2: Its value is determined daily based on the currency values of
its constituent currencies.
The SDR is neither a currency, nor a claim on the IMF. Rather, it is a
potential claim on the freely usable currencies of IMF members.
reserve asset.
SDRs can be exchanged for freely usable currencies. So, 1 is wrong.
The value of the SDR is currently based on a basket of four major
currencies: the U.S. dollar, euro, the Japanese yen, and pound sterling. The
basket will be expanded to include the Chinese renminbi (RMB) as the fifth
currency, effective October 1, 2016.
Statement 2: Its value is determined daily based on the currency values of
its constituent currencies.
The SDR is neither a currency, nor a claim on the IMF. Rather, it is a
potential claim on the freely usable currencies of IMF members.
Q Source: Often in news as it new SDR will be effective from October 2016
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The SDR is an international reserve asset, created by the IMF in1969 to supplement its member countries’ official reserves. Considerthe following about Special Drawing Rights (SDR).1. SDRs cannot be exchanged for freely usable currencies.2. Value of a SDR is fixed on an annual basis and revised on thediscretion of IMF.Which of the above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)NoneCorrect answer is option 'D'. Can you explain this answer?
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The SDR is an international reserve asset, created by the IMF in1969 to supplement its member countries’ official reserves. Considerthe following about Special Drawing Rights (SDR).1. SDRs cannot be exchanged for freely usable currencies.2. Value of a SDR is fixed on an annual basis and revised on thediscretion of IMF.Which of the above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)NoneCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The SDR is an international reserve asset, created by the IMF in1969 to supplement its member countries’ official reserves. Considerthe following about Special Drawing Rights (SDR).1. SDRs cannot be exchanged for freely usable currencies.2. Value of a SDR is fixed on an annual basis and revised on thediscretion of IMF.Which of the above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)NoneCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The SDR is an international reserve asset, created by the IMF in1969 to supplement its member countries’ official reserves. Considerthe following about Special Drawing Rights (SDR).1. SDRs cannot be exchanged for freely usable currencies.2. Value of a SDR is fixed on an annual basis and revised on thediscretion of IMF.Which of the above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)NoneCorrect answer is option 'D'. Can you explain this answer?.
The SDR is an international reserve asset, created by the IMF in1969 to supplement its member countries’ official reserves. Considerthe following about Special Drawing Rights (SDR).1. SDRs cannot be exchanged for freely usable currencies.2. Value of a SDR is fixed on an annual basis and revised on thediscretion of IMF.Which of the above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)NoneCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The SDR is an international reserve asset, created by the IMF in1969 to supplement its member countries’ official reserves. Considerthe following about Special Drawing Rights (SDR).1. SDRs cannot be exchanged for freely usable currencies.2. Value of a SDR is fixed on an annual basis and revised on thediscretion of IMF.Which of the above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)NoneCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The SDR is an international reserve asset, created by the IMF in1969 to supplement its member countries’ official reserves. Considerthe following about Special Drawing Rights (SDR).1. SDRs cannot be exchanged for freely usable currencies.2. Value of a SDR is fixed on an annual basis and revised on thediscretion of IMF.Which of the above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)NoneCorrect answer is option 'D'. Can you explain this answer?.
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