Multiple choice

What does the term 'Paper Gold' refer to?

  1. Special Drawing Rights of IMF

  2. Receipt of Gold deposits

  3. Loans on Gold Biscuits

  4. Sanction letter of Gold Loan

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A Correct answer
Explanation

Paper Gold refers to Special Drawing Rights (SDRs) created by the IMF. SDRs are international reserve assets that supplement member countries' official reserves. They're called paper gold because they provide liquidity similar to gold without being physical assets.