BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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

Which of the following is called “paper gold"?

A	Euro
B	Dollar
C	Yuan
D	SDR

Explanation:

Detailed explanation-1: -The SDR unit of valuation is known as paper gold. SDR represents Special Drawing Rights. It is an accounting entry and measures a nation’s reserve assets with IMF.

Detailed explanation-2: -Special drawing rights (SDR) Also called paper gold, an SDR is neither paper nor gold but an accounting entry. It is not backed by any currency or precious metal, and is used only among governments and IMF for balance Of payments settlements.

Detailed explanation-3: -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.

Detailed explanation-4: -Q1. What is an SDR? 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.

Detailed explanation-5: -The correct answer is Special Drawing Rights (SDR) of IMF. The term ‘paper gold’ refers to the Special Drawing Rights (SDR) of IMF. Special Drawing Rights (SDR):

There is 1 question to complete.