A) goods and services
B) gold and silver
C) dollars and other hard currencies
D) exportable surplus
Correct Answer: C
Solution :
Exp. [a] The concept of international liquidity is associated with international payments. These payments arise out of international trade in goods and services and also in connection with capital movements between one country and another. International liquidity is foreign currency like Dollars, Sterling or Gold in the reserve of any country. It is very useful to pay the amount of imported goods and reduce balance of payment deficit. Every country should increase exports for reducing international liquidity shortage.
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