What is a Special Drawing Right?
Correct answer: C. The supraterritorial denomination issued throughout the IMF (used as its unit of account)
- A. A bond denominated in a currency alien to underwrites
- B. A loan provided in special Euromarkets.
- C. The supraterritorial denomination issued throughout the IMF (used as its unit of account)
- D. Site for financial business offering tax reductions and subsidies
Explanation
A Special Drawing Right is an IMF-created international reserve asset whose value is based on a basket of major currencies and which serves as an IMF unit of account. Option c is the closest description, although its wording is technically imprecise.
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