What is the 'Special Drawing Right' (SDR) in the context of the IMF? MCQ with Answer and Explanation

What is the 'Special Drawing Right' (SDR) in the context of the IMF?
A. A military defense fund
B. An international reserve asset
C. A physical currency issued by the IMF
D. A tax on international trade
Answer: Option B
Solution (By JKExamLibrary)
SDRs are a form of international reserve asset created by the IMF to supplement the official reserves of member countries.

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Practice More International Organizations Questions

Question #1 Report Error
Which of the following is the headquarters of the Food and Agriculture Organization (FAO)?
A. New York
B. Geneva
C. Rome
D. Paris

Correct Answer: Option C


Explanation:
The headquarters of FAO is in Rome, Italy.

Question #2 Report Error
What is the primary function of the United Nations Security Council?
A. Fighting diseases
B. Maintaining international peace
C. Education development
D. Promoting trade

Correct Answer: Option B


Explanation:
The UN Security Council's primary responsibility is the maintenance of international peace and security.

Question #3 Report Error
What is the purpose of the 'Multilateral Investment Guarantee Agency' (MIGA)?
A. To provide humanitarian aid
B. To provide political risk insurance
C. To set global labor standards
D. To regulate global oil prices

Correct Answer: Option B


Explanation:
MIGA, a member of the World Bank Group, provides political risk insurance (guarantees) to investors.