The problem of international liquidity is related to the non- availability of
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A.
goods and services
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B.
gold and silver
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C.
dollars and other hard currencies
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D.
exportable surplus
Correct Answer:
C. dollars and other hard currencies
Explanation:
The problem of international liquidity is related to the non-availability of
(c) dollars and other hard currencies.
Explanation:
International liquidity refers to the resources available to countries to finance their balance of payments deficits and undertake international transactions.
It mainly consists of reserves of convertible foreign currencies such as the US dollar, euro, etc., which are widely accepted as means of international payment.
Gold plays a role but in modern global finance, dollars and other hard currencies are primary.
The problem arises when countries do not have enough hard currencies for international trade and to meet global financial obligations.
Therefore, the correct answer is (c) dollars and other hard currencies.
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