CSEET · Economic and Business Environment · Global Environment
The Special Drawing Right (SDR) created by the IMF is best described as:
The SDR is an international reserve asset created by the IMF to supplement members' official reserves. Its value is based on a basket of major currencies. It is not a circulating currency, a loan facility, or a gold holding.
- AA physical currency printed by the IMF for use in member countries' retail transactions
- BA loan facility available only to developing countries
- CAn international reserve asset whose value is based on a basket of major currenciesCorrect
- DA fixed quantity of gold held by each member country
Explanation
The SDR is a supplementary international reserve asset allocated to members, valued by reference to a basket of major currencies. It is neither a currency in circulation nor a loan, and it is not tied to gold.
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