Consider the following statements:
1. There's no international standard for selecting a basket of currencies.
2. The Organization for Economic Co-operation and Development (OECD) basket is similar to the basket of the Federal Reserve.
3. Many institutions rely on the International Financial Statistics published by the IMF.

Which of the given above statement(s) is/are correct?
(a) 1 only
(b) 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Question

Consider the following statements:
1. There's no international standard for selecting a basket of currencies.
2. The Organization for Economic Co-operation and Development (OECD) basket is similar to the basket of the Federal Reserve.
3. Many institutions rely on the International Financial Statistics published by the IMF.

Which of the given above statement(s) is/are correct?
(a) 1 only
(b) 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

ONLiNE UPSC · Accepted Answer

Statement 1 is correct: There is no single, universally accepted standard for selecting a basket of currencies. Different organizations or countries create their own baskets based on various economic or trade-related criteria. For example, the IMF's SDR basket differs from other baskets used by central banks or institutions.

Statement 2 is not correct: The Organization for Economic Co-operation and Development (OECD) basket is different from the baskets of the International Monetary Fund (IMF), the Federal Reserve, or the Bank of Japan.

Statement 3 is correct: The International Financial Statistics (IFS) is a widely used database maintained by the IMF that provides economic and financial data. Many institutions use it for research, analysis, and comparison.

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Currency Baskets and International Financial Statistics

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M Question 1	⏱ 0
Consider the following statements: 1. There's no international standard for selecting a basket of currencies. 2. The Organization for Economic Co-operation and Development (OECD) basket is similar to the basket of the Federal Reserve. 3. Many institutions rely on the International Financial Statistics published by the IMF. Which of the given above statement(s) is/are correct? (a) 1 only (b) 3 only (c) 1 and 3 only (d) 1, 2 and 3