Special Drawing Rights are issued by which institution?

The World BankCorrect answerYour answerThe International Monetary FundCorrect answerYour answerThe Bank for International SettlementsCorrect answerYour answerThe World Trade OrganizationCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

SDRs are an international reserve asset created by the IMF and allocated to member countries in proportion to their quotas.
An SDR is not a currency: its value is set from a basket of major currencies and it can be exchanged for them.
A country's quota at the IMF is stated in SDRs, and so is its voting share.

Worth noting

The Indian rupee is not in the basket. The currencies in it are the US dollar, the euro, the Chinese renminbi, the Japanese yen and the pound sterling.

Concept: Who issues Special Drawing Rights
Typical timeTypical: 40 s
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The rule this testsInternational economic bodies

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Ten questions from Indian Economy & Institutions, at your own pace.

Special Drawing Rights are issued by which institution?

Explanation