Consider the following statements regarding Special Drawing Rights (SDR)begin{enumerate}item SDR is known as the paper golditem It is an international unit of accountitem The IMF pays no interest on all holdings of SDRs, kept in the special drawing accountitem The Quotas of all currencies in the IMF General account are also valued in terms of the SDRend{enumerate}

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Consider the following statements regarding Special Drawing Rights (SDR)

A	1, 2 and 3
B	2, 3 and 4
C	1, 2 and 4
D	1, 3 and 4

Explanation:

Detailed explanation-1: -An SDR is called paper gold because at the time of its creation it was viewed as an asset that could act as a reserve asset that would supplement gold reserves and other currencies, thus the name, paper gold.

Detailed explanation-2: -The Special Drawing Right (SDR) is an interest-bearing international reserve asset created by the IMF in 1969 to supplement other reserve assets of member countries. The SDR is based on a basket of international currencies comprising the U.S. dollar, Japanese yen, euro, pound sterling and Chinese Renminbi.

Detailed explanation-3: -The SDR is an international reserve asset. The SDR is not a currency, but its value is based on a basket of five currencies-the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling.

Detailed explanation-4: -Special Drawing Rights (SDRs) The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries. The SDR is not a currency. It is a potential claim on the freely usable currencies of IMF members. As such, SDRs can provide a country with liquidity.

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