UPSC CSE Prelims 2010
Special Drawing Rights (SDR) are an international reserve asset created by the International Monetary Fund (IMF) in 1969. Their purpose is to supplement the official reserves of member countries. SDRs are not a currency themselves but represent a potential claim on the freely usable currencies of IMF members. Their value is derived from a basket of five major currencies: the US Dollar, Euro, Chinese Yuan, Japanese Yen, and British Pound. Due to their synthetic nature as an international reserve asset and their role in providing liquidity without being a physical currency, they are often referred to as "artificial currency."
American Depositary Receipts (ADRs) are financial instruments that represent shares of a foreign company, allowing them to be traded on U.S. stock exchanges. They are not a form of currency, artificial or otherwise, but rather a means to facilitate investment in foreign equities.
Global Depositary Receipts (GDRs) are similar to ADRs but are issued by an international bank and traded on global stock exchanges outside the company's home country. Like ADRs, GDRs are financial instruments representing shares and are not a currency.
Option (d) is incorrect because ADRs are financial instruments for equity investment, not a form of currency. Therefore, the combination of ADR and SDR as artificial currencies is inaccurate.