Supplementary reserves in the form of accounting entries maintained with the IMF by various governments are known as:
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A. B. C. D.D
Special Drawing Rights are accounting entries established with the International Monetary Fund which can be used to satisfy debits or credits on the BOP account. Of course, these are simply accounting devices used to keep track of the assets or debts of the different nations arising from international exchange.
Ultimately, the entries must come to fruition through a supply of goods, services or unrequited transfers. So if country A uses the SDR to make a short-term payment to country B on its BOP account, it is not considered to be in default but must ultimately extinguish this debt by supplying goods or services to the B.
The SDRs are more significant for economies trying to artificially maintain a fixed exchange rate system.
For floating currencies, the BOPs can be at least partially offset through changes in exchange rates.