Which of the following is NOT and attribute of the Special Drawing Right?
Correct answer: B. It can be owned by states or companies, but not by individuals
- A. It is linked in value to a basket of several key international currencies
- B. It can be owned by states or companies, but not by individuals
- C. It is the closest thing to a world currency that exists
- D. It is created in limited amounts by the IMF
Explanation
SDRs are IMF-created reserve assets allocated to member states and held by prescribed official institutions, not by private companies or individuals. They are valued against a basket of major currencies and are often described as the nearest existing equivalent to a world currency.
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