What is meant by Special Drawing Rights (SDR)? Which institution maintains it?

Question

Accepted Answer

The Special Drawing Right (SDR) is an international reserve asset created and maintained by the International Monetary Fund. The IMF can allocate SDRs to its member countries to supplement their own official foreign-exchange reserves, giving them an additional cushion of international liquidity. The SDR functions as a unit of account used among central banks and the IMF rather than as a currency that individuals or businesses use in everyday transactions. Its maintenance and allocation is a …

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2026Set MARCH1 markMCQ
$Q. The other name for Special Drawing Rights is ______.$
(a) Quotas
(b) Voluntary Export Restrictions
(c) Paper gold
(d) None of the above
›Reveal solutionSolution

Special Drawing Rights are nicknamed 'paper gold', so the answer is (c).

In the international economic organisations topic of the Tamil Nadu HSC Commerce syllabus, the International Monetary Fund (IMF) created Special Drawing Rights (SDRs) in 1969 as an international reserve asset to supplement the official reserves of member countries.

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CBSE 2025Set MARCH1 markMCQ
$Q. International Monetary Fund was an outcome of __________.$
(a) Bretton Woods Conference
(b) Pandung Conference
(c) Singapore Conference
(d) Doha Conference
›Reveal solutionSolution

The IMF was an outcome of the Bretton Woods Conference — option (a).

In the Tamil Nadu HSC Class-12 Economics syllabus (International Economic Organisations), both the International Monetary Fund (IMF) and the World Bank were created at the Bretton Woods Conference held in 1944 in New Hampshire, USA. The IMF began operations in 1947 to promote internationa …

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CBSE 2024Set MARCH1 markMCQ
$Q. The other name for Special Drawing Rights is :$
(a) Voluntary export restrictions
(b) Paper gold
(c) Patents
(d) Quotas
›Reveal solutionSolution

Special Drawing Rights (SDRs) are also known as 'paper gold'.

Special Drawing Rights are an international reserve asset created by the International Monetary Fund (IMF) in 1969 to supplement the official reserves of member countries. Because they function like gold as an international means of settlement but exist only as book entries (not a physical metal), they are popularly called 'paper gold'.

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Q.What is meant by Special Drawing Rights (SDR)? Which institution maintains it?

Concept understanding — International Monetary Fund (IMF)

Q.What is meant by Special Drawing Rights (SDR)? Which institution maintains it?

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