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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 an  international reserve asset  created by the  International Monetary Fund (IMF)  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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