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The Special Drawing Rights International Reserves Were Created by the IMF

question 6

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The Special Drawing Rights international reserves were created by the IMF to supplement other international reserves and distributed to member nations according to their quotas in the fund.


Definitions:

FICA Taxes

Taxes imposed by the Federal Insurance Contributions Act, funding Social Security and Medicare programs, withheld from employees’ pay and matched by employers.

Medicare Taxes

Taxes collected from employees and employers to fund the Medicare program, which provides healthcare benefits to retirees.

State Income Taxes

Taxes imposed by individual states on the income generated by businesses and individuals within that state.

Liability Account

A type of accounting record that shows the obligations or debts a company owes to others.

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