Which of the following is/are treated as artificial currency?

Question

What is meant by the creation of charge in the context of secured loans?

Answer 1

The word "artificial currency" is the giveaway in this question, since only one of the listed terms is actually a currency-like unit.

ADR: A depositary receipt that lets US investors hold shares of a foreign company; it represents stock, not money.
GDR: Similar to an ADR but traded in markets outside the US; again a share-representing instrument, not a currency.
Both GDR and ADR: Since neither is a currency, combining them does not make this option correct either.
SDR: An IMF-created reserve unit whose value is derived from a basket of major world currencies (like the US dollar, euro, yen, and others). It functions as a currency-like unit without being issued by any single country, which is exactly what "artificial currency" means.

So the correct answer is option D, SDR.

Answer 2

The word "artificial currency" is the giveaway in this question, since only one of the listed terms is actually a currency-like unit.

ADR: A depositary receipt that lets US investors hold shares of a foreign company; it represents stock, not money.
GDR: Similar to an ADR but traded in markets outside the US; again a share-representing instrument, not a currency.
Both GDR and ADR: Since neither is a currency, combining them does not make this option correct either.
SDR: An IMF-created reserve unit whose value is derived from a basket of major world currencies (like the US dollar, euro, yen, and others). It functions as a currency-like unit without being issued by any single country, which is exactly what "artificial currency" means.

So the correct answer is option D, SDR.

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