The IMF predicts that the Indian economy will grow by approximately 6% in the current fiscal year. What is the Special Drawing Rights (SDR) of the IMF?

Question

A reserve asset created by the IMF to supplement member countries' official reserves.
A type of financial assistance provided by the IMF to countries experiencing a balance of payments crisis.
A program that promotes sustainable economic growth in developing countries.
A type of loan provided by the IMF to low-income countries.

Solutons With Key Points

Answer- A

The International Monetary Fund (IMF) introduced Special Drawing Rights (SDRs) as a reserve asset with the aim of bolstering the official reserves of its member nations.

SDRs can serve as a means of payment among member countries or they can be exchanged for a member country's currency.