GK
INSURANCE AWARENESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Hot money
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Paper gold
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Cold money
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None of these
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Detailed explanation-1: -SDR stands for Special Drawing Rights. This refers to supplementary foreign-exchange reserve. It is also known as paper gold. It is maintained by International Monetary Fund.
Detailed explanation-2: -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. International Monetary Fund. “Special Drawing Rights (SDR).” Accessed Jan. 10, 2022.
Detailed explanation-3: -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.