The Special Drawing Right (SDR): O a. Was created by the International Monetary Fund (IMF) in 1970 as a new reserve asset. b. Partially alleviates the pressure on the U.S. dollar as the key reserve currency. O.All of the above. O d. None of the above.
Functions of the Federal Reserve System
The Federal Reserve System looks after the financial activities and operations of the banking system. It is the apex body that has complete control over the banking regulations. All the guidelines regarding the banking system, money supply, and formulation of the monetary policy come under the purview of the Federal Reserve System. The New York Fed also helps in drafting the monetary policy and supervising the financial system.
Elastic and Inelastic Markets
Measuring the change in percentage of an economic variable with respect to change in a different economic variable is known as elasticity. This change in percentage results in a change in price concerning changes in other factors. In simple terms, when one factor brings a change to another factor, it is called elasticity.
Special Drawing Rights or S.D.R.s is created by International Monetary Fund or I.M.F. in 1969 and assists the existing money reserves of member countries. It is an international type of money reserve currency. S.D.R's value is calculated depending on U.S. dollar, Euro, Japanese yen, Chinese Yuan, and the British pound. This is created for the internal accounting period.
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