Which asset, established by the IMF in 1967, serves as an international reserve based on a basket of major global currencies?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

Explanation

The Special Drawing Rights (SDR) were introduced by the IMF in 1967 as an international reserve asset. Its value is derived from a weighted basket of widely used currencies, distinguishing it from other similar-sounding terms.

Practice related questions from the same subject.

1.Which of the following best describes deflation?
2.Under what condition can two nations benefit from engaging in international trade?
3.Which of the following represents a legitimate form of currency?
4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

Which asset, established by the IMF in 1967, serves as an international reserve based on a basket of major global currencies?

Explanation

More Basic of Economics MCQs