Banking Awareness Quiz

Banking Awareness Quiz – Set 281: These questions on Banking Awareness are most important for banking and insurance exams. The question asked in the Banking Awareness section are based both on static banking and that to current banking in news. These Banking Awareness sets will guide you in all banking exams like IBPS Clerk, IBPS PO, SBI Clerk, SBI PO, RRB Clerk and PO and other exams. So attempt all the sets now.

The questions of this banking awareness quiz are based on Special Drawing Rights (SDR)

1. Special Drawing Rights (SDR) is an international reserve asset. It has been created by which bank?
   A) World Bank
   B) Asian Development Bank
   C) International Monetary Fund
   D) US Federal Reserve
   
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     Option C
   Explanation: The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves.
2. The value of the Special Drawing Rights (SDR) is based on a basket of how many currencies?
   A) 3
   B) 4
   C) 5
   D) 6
   
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     Option C
   Explanation: 5 currencies
3. Which of the following currency is not a part of basket of currency of SDR?
   A) USD
   B) Euro
   C) Rial
   D) Japanese Yen
   
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   Option C
   Explanation: The value of the SDR is based on a basket of five currencies—the U.S. dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling.
4. The SDR basket is reviewed every ______ years, or earlier if warranted, to ensure that the basket reflects the relative importance of currencies in the world’s trading and financial systems.
   A) five
   B) four
   C) eight
   D) six
   
   View answer

   Option A
   Explanation: 5 years
5. The value of the SDR is determined ______ based on market exchange rates.
   A) daily
   B) weekly
   C) monthly
   D) fortnightly
   
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   Option A
   Explanation: The value of the SDR is determined daily based on market exchange rates.
6. Which currency has the highest weight in the SDR basket?
   A) USD
   B) Chinese Yuan
   C) Euro
   D) Japanese Yen
   
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   Option A
   Explanation: USD- 41.73%; Euro- 30.93%; Yuan- 10.92%; Yen- 8.33%; Pound Sterling- 8.09%
7. In which year was SDR created?
   A) 1970
   B) 1965
   C) 1968
   D) 1969
   
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   Option D
   Explanation: In 1969
8. What is the total amount of SDR allocated by IMF to all its member as on date?
   A) SDR 943.7 billion
   B) SDR 204.7 billion
   C) SDR 456 billion
   D) SDR 660.7 billion
   
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   Option D
   Explanation: To date, a total of SDR 660.7 billion (equivalent to about US$943 billion) have been allocated.
9. Before the collapse of Bretton Woods system, SDR was defined in terms of _________.
   A) USD
   B) Gold
   C) Silver
   D) Pound
   
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   Option B
   Explanation: The SDR was initially defined as equivalent to 0.888671 grams of fine gold
10. The value of the SDR interest rate (SDRi) is determined of ______ basis.
    A) weekly
    B) daily
    C) monthly
    D) fortnighly
    
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    Option A
    Explanation: Determined weekly based on a weighted average of representative interest rates on short-term government debt instruments in the money markets of the SDR basket currencies, with a floor of 5 basis points.

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