The term 'Special Drawing Rights' can be used by member countries of the IMF for: MCQ with Answer and Explanation

The term 'Special Drawing Rights' can be used by member countries of the IMF for:
A. Only purchasing gold
B. Only financing fiscal deficit
C. Settling international payments and as a reserve asset
D. Only domestic transactions
Answer: Option C
Solution (By JKSSB Mock Tests)
SDRs are international reserve assets that can be exchanged for freely usable currencies and used in transactions among IMF members and prescribed holders.

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Practice More Economy Set 1 Questions

Question #1
The concept of 'Stranded Assets' in the energy transition refers to:
A. Only financial assets unrelated to the real economy
B. Only fully depreciated assets
C. Only newly created green assets
D. Assets that suffer unanticipated write-downs or devaluations because of climate-related risks and the shift to a low-carbon economy

Correct Answer: Option D


Explanation:
Stranded assets are those that lose economic value prematurely as a result of changes associated with the energy transition, such as policy shifts, technological change or shifts in demand away from fossil fuels.

This question belongs to: Economy GK Economy Set 1
Question #2
The concept of 'Time Preference' is related to the theory of:
A. Wages
B. Profit
C. Rent
D. Interest

Correct Answer: Option D


Explanation:
The time preference theory of interest (associated with Böhm-Bawerk and others) explains interest as arising from the preference for present goods over future goods.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' rate on periodicals and journals is:
A. 18%
B. 12%
C. 5%
D. 0%

Correct Answer: Option D


Explanation:
Periodicals and journals are exempt from GST.

This question belongs to: Economy GK Economy Set 1