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    Question

    Special Drawing Rights (SDRs)

    are:
    A A hard currency issued by the IMF. Correct Answer Incorrect Answer
    B A basket of reserve currencies used as an international reserve asset by the IMF. Correct Answer Incorrect Answer
    C Loans provided by the World Bank for structural adjustment. Correct Answer Incorrect Answer
    D Bonds issued by the BIS. Correct Answer Incorrect Answer
    E A type of currency futures contract. Correct Answer Incorrect Answer

    Solution

    SDRs are an international reserve asset created by the IMF to supplement member countries' official reserves. Its value is based on a basket of five major currencies: USD, Euro, Chinese Yuan, Japanese Yen, and British Pound Sterling.

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