UPSC Prelims 2016 GS Paper I · Q14 of 100 Economy easy

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

  1. (a) Rouble
  2. (b) Rand
  3. (c) Indian Rupee
  4. (d) Renminbi ✓ UPSC's answer

Why the answer is (d)

• In November 2015 the IMF decided to add the Chinese renminbi (yuan) to the Special Drawing Rights basket, effective October 2016, alongside the US dollar, euro, yen and pound sterling — option (d).

• The renminbi was judged 'freely usable' and given a 10.9% weight, the third-largest.

• The rouble (a), rand (b) and rupee (c) are not in the basket.

• Hence option (d).

Why the other options are wrong

(a) Rouble
The rouble is not in the SDR basket.
(b) Rand
The rand is not in the SDR basket.
(c) Indian Rupee
The rupee is not in the SDR basket.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2016, held on 7 August 2016. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

Reading the answer is not the same as getting it right under a clock. Practise this question with UPSC's negative marking, and anything you miss goes into an error notebook until you get it right twice.

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