UPSC Prelims 2010·GS1·economy·money and banking

Which of the following is/are treated as artificial currency?

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Last updated 23 May 2026, 3:31 pm IST
  1. AADR
  2. BGDR
  3. CSDRCorrect
  4. DBoth ADR and SDR

Explanation

SDR stands for Special Drawing Rights. It is an international reserve asset created by the International Monetary Fund IMF in 1969. It is called an artificial currency or paper gold because it is not a physical currency like the Dollar or Euro. Instead, it is a potential claim on the freely usable currencies of IMF members. It exists only as a book keeping entry and its value is based on a basket of five major international currencies. In contrast, ADR American Depository Receipt and GDR Global Depository Receipt are financial instruments used to invest in equity shares of foreign companies and are not considered currencies. Therefore, only SDR is treated as an artificial currency.
economy: Which of the following is/are treated as artificial currency?

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