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One Problem of Adopting the Special Drawing Right (SDR) as a Reserve

Question 146

True/False
One problem of adopting the Special Drawing Right (SDR) as a reserve currency is that the SDR is backed by nothing other than the good faith and credit of the International Monetary Fund (IMF); that is,the IMF produces nothing to support the value of the SDR.

One problem of adopting the Special Drawing Right (SDR) as a reserve currency is that the SDR is backed by nothing other than the good faith and credit of the International Monetary Fund (IMF); that is,the IMF produces nothing to support the value of the SDR.

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