Consider the following currencies:

  1. Euro
  2. Japanese Yen
  3. British Pound

At present, which of the above is/are included in basket of reserve currencies under International Monetary Fund?

Answer: [C] 1,2 and 3

All the above mentioned currencies are included as reserve currencies under IMF. Kindly, note that; after Euro (EUR),Japanese Yen (JPY),British Pound (GBP)andU.S. Dollar (USD), the Chinese renminbi (RMB) will become the fifth currency included in the global 'basket' of reserve currencies from 1 October 2016, by IMF.The RMB will account for 10.92% of the value of the 'special drawing right' (SDR) basket alongside the US dollar, accounting for 41.73%; the euro, accounting for 30.93%; the Japanese yen, accounting for 8.33%; and the British pound, accounting for 8.09%.An international type ofmonetary reservecurrency was created by theInternational Monetary Fund (IMF)in 1969, which operates as a supplement to the existing reserves of member countries.

This question is a part of GKToday's Integrated IAS General Studies Module