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In the context of external sector, 'Special Drawing Rights' (SDR) is an international reserve asset to supplement its member countries’ official reserves. It is created by which of the following institutions?
  • a)
    World Bank
  • b)
    World Trade Organization
  • c)
    International Monetary Fund
  • d)
    US Federal Reserve
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
In the context of external sector, Special Drawing Rights (SDR) is an ...
  • The Special Drawing Rights (SDR) is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. 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. SDRs can be exchanged for these currencies. The SDR serves as the unit of account of the IMF and some other international organizations. The currency value of the SDR is determined by summing the values in US dollars, based on market exchange rates, of a SDR basket of currencies.
  • Hence option (c) is the correct answer.
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In the context of external sector, Special Drawing Rights (SDR) is an international reserve asset to supplement its member countries’ official reserves. It is created by which of the following institutions?a)World Bankb)World Trade Organizationc)International Monetary Fundd)US Federal ReserveCorrect answer is option 'C'. Can you explain this answer?
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In the context of external sector, Special Drawing Rights (SDR) is an international reserve asset to supplement its member countries’ official reserves. It is created by which of the following institutions?a)World Bankb)World Trade Organizationc)International Monetary Fundd)US Federal ReserveCorrect answer is option 'C'. 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 In the context of external sector, Special Drawing Rights (SDR) is an international reserve asset to supplement its member countries’ official reserves. It is created by which of the following institutions?a)World Bankb)World Trade Organizationc)International Monetary Fundd)US Federal ReserveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the context of external sector, Special Drawing Rights (SDR) is an international reserve asset to supplement its member countries’ official reserves. It is created by which of the following institutions?a)World Bankb)World Trade Organizationc)International Monetary Fundd)US Federal ReserveCorrect answer is option 'C'. Can you explain this answer?.
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