BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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World Bank
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Asian Development Bank
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Federal Reserve
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European Common Market
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Detailed explanation-1: -Special Drawing Rights (SDRs) The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries.
Detailed explanation-2: -Who can hold SDRs? Individuals and private entities cannot hold SDRs. IMF members – and the IMF itself – hold SDRs and the IMF has the authority to approve other holders, such as central banks. As of end-January 2021, there were 15 organizations approved as prescribed holders.
Detailed explanation-3: -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-4: -Paper gold is the special drawing rights given by the International Monetary Fund to its member countries. It is an accounting entry. It is used only among governments and IMF for balance of payment settlements.
Detailed explanation-5: -The International Monetary Fund (IMF) allocates Special Drawing Rights (SDR) to different countries.