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    Question

    The 'Special Drawing Right (SDR)' is an international

    reserve asset created by:
    A The World Bank Correct Answer Incorrect Answer
    B The Bank for International Settlements (BIS) Correct Answer Incorrect Answer
    C The International Monetary Fund (IMF) Correct Answer Incorrect Answer
    D The World Trade Organization (WTO) Correct Answer Incorrect Answer
    E The United Nations Correct Answer Incorrect Answer

    Solution

    • The SDR is anĀ  international reserve asset Ā created by theĀ  International Monetary Fund (IMF) Ā in 1969 to supplement its member countries' official foreign exchange reserves (like USD, EUR). It is not a currency, but a potential claim on the freely usable currencies of IMF members. Its value is based on a basket of five major currencies (USD, EUR, CNY, JPY, GBP). The IMF can allocate SDRs to members to provide liquidity to the global monetary system.

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