2016 GS Paper I, all questions

UPSC Prelims 2016 · GS Paper I

Question 14: Economy and Social Development

Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?

aRouble
bRand
cIndian Rupee
dRenminbi

AnswerUPSC’s answer is (d).

In November 2015 the IMF Executive Board decided to add the Chinese renminbi to the SDR basket, alongside the US dollar, euro, yen and pound sterling, with effect from 1 October 2016. The rouble, rand and rupee were not proposed. The SDR is an international reserve asset created by the IMF, and its value is set by the basket of currencies.

Why each option is right or wrong
  • (a) The rouble was not proposed for the SDR basket.
  • (b) The rand was not proposed for the SDR basket.
  • (c) The Indian rupee was not proposed for the SDR basket.
  • (d) Right: the renminbi was the currency added to the SDR basket.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2016, General Studies Paper I, Series A. The paper on upsc.gov.in.