Which of the following is/are treated as artificial currency? (UPSC Prelims 2010)

Question

Special Drawing Rights (SDR) is an artificial reserve currency created by the International Monetary Fund (IMF) in 1969 to supplement member countries\' official reserves. It is neither a currency nor a claim on the IMF but a potential claim on freely usable currencies of IMF members, often called paper gold due to its asset-like nature. American Depositary Receipts (ADR) and Global Depositary Receipts (GDR) are financial instruments representing shares of foreign companies traded on domestic exchanges, not currencies. Thus, only SDR qualifies as artificial currency.

GKToday Admin · Accepted Answer

SDR Special Drawing Rights (SDR) is an artificial reserve currency created by the International Monetary Fund (IMF) in 1969 to supplement member countries\' official reserves. It is neither a currency nor a claim on the IMF but a potential claim on freely usable currencies of IMF members, often called paper gold due to its asset-like nature. American Depositary Receipts (ADR) and Global Depositary Receipts (GDR) are financial instruments representing shares of foreign companies traded on domestic exchanges, not currencies. Thus, only SDR qualifies as artificial currency.

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