Multiple choice

Which of the following is known as Paper Gold?

  1. ADR

  2. GDR

  3. SDR

  4. None
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SDR (Special Drawing Rights) are international reserve assets created by the IMF to supplement member countries' official reserves. They are called 'paper gold' because they represent a claim on currency and provide liquidity similar to gold reserves. ADRs and GDRs are instruments for trading foreign shares in domestic markets.

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