economics easy Fill in the Blank

The Special Drawing Rights (SDR), an international reserve asset created by the IMF to supplement its member countries' official reserves, is colloquially known as ___.

  1. stagflation
  2. Paper Gold
  3. IDRCL (or India Debt Resolution Company Ltd)
  4. jobless growth

Answer: Paper Gold

The SDR was created in 1969 during the Bretton Woods fixed exchange rate system when gold and the US dollar were the primary reserve assets. Because it was intended to act as a synthetic substitute for gold in international settlements, despite existing only as a bookkeeping entry, it earned the nickname 'Paper Gold'.

Topic International Economics - Forex
Exam Relevance SSC, Railway, UPSC
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