International liquidity refers to the availability of financial assets that can be readily used to settle international transactions, primarily reserves of convertible foreign currencies (hard currencies), gold, and drawing rights with international institutions like the IMF (SDRs).
The problem of international liquidity is related to the non-availability of
Asked in UPSC IAS 2015 · Topic: Balance of Payments (BoP) (Components of BoP: Financial Account (Official Reserve Account))
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Answer: C. dollars and other hard currencies
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