Special Drawing Rights Are

question 139

Multiple Choice

Special Drawing Rights are

• A)a reserve asset created by the International Monetary Fund that can be used to settle international payments.
• B)loans granted by the International Monetary Fund to countries that experience balance of payments problems.
• C)the term given for official reserves taken as a whole.
• D)financial assets held by the U.S. Treasury Department.

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Definitions:

Price Competition

A market situation where businesses compete primarily by lowering their prices to attract customers.

Quality Competition

The competition among businesses to offer products or services of higher quality, often instead of competing on price.

Product Differentiation

Refers to the process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Market Power

The ability of a firm to influence or control the price and output levels in a market.