Question
GSMediumPrelims 2015Economy

The problem of international liquidity is related to the non-availability of -

Explanation

The correct answer is (C) dollars and other hard currencies

International Liquidity: This refers to a country's ability to meet its short-term external obligations (payments for imports, debt servicing, etc.) It essentially reflects the ease with which a country can access foreign currencies needed for international transactions.

Focus on Hard Currencies: While some transactions might involve other currencies, international reserves are predominantly held in major reserve currencies like the US Dollar, Euro, Japanese Yen, and British Pound. These currencies are considered "hard" because they are stable, widely traded, and liquid (easily convertible into other currencies).

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