Question

Q33) Consider the following statements:

i) The SDR is an international reserve asset, created by the World Bank.

ii) Recently, the Chinese Renminbi was added to the reserve currency list.

Which of the above statements is/are correct?

• A. a) i only
• B. b) ii only
• C. c) Both i and ii
• D. d) None

Answer 1

The correct option is B

b) ii only

Ans: B
Explanation: The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries official reserves.

In the most recently concluded review (November 2015), the Executive Board decided that the Chinese renminbi (RMB) met the existing criteria for SDR basket inclusion and therefore, effective October 1, 2016, would join the SDR basket, along with the U.S. dollar, euro, Japanese yen, and pound sterling.