WBCS.LIVE practice question

Special Drawing Rights (SDR) are created and allocated by which international organization?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. World Bank
  2. World Trade Organization (WTO)
  3. International Monetary Fund (IMF)
  4. Asian Development Bank (ADB)

Correct answer and explanation

Correct answer: International Monetary Fund (IMF)

Explanation: āœ… Correct Answer: C) International Monetary Fund (IMF) šŸ“š Explanation: Special Drawing Rights (SDR) are an international reserve asset created by the International Monetary Fund (IMF) in 1969 to supplement its member countries' official reserves. The value of the SDR is strictly based on a basket of five major international currencies: the US dollar, Euro, Chinese Renminbi, Japanese yen, and British pound sterling. It is not a currency itself, but rather a potential claim on the freely usable currencies of IMF members.