Which of the following are included in the international liquidity? Indicate the correct code. i)…
In its comprehensive sense, international liquidity comprises all official financial resources and credit facilities available to monetary authorities for financing Balance…
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Which of the following are included in the international liquidity? Indicate the correct code.
i) Foreign exchange reserve
ii) Borrowing capacity of the various countries
iii) Gold reserves
Answer and explanation
Correct answer B
In its comprehensive sense, international liquidity comprises all official financial resources and credit facilities available to monetary authorities for financing Balance of Payments deficits. This includes foreign exchange reserves (i), international borrowing capacity/credit lines of countries (ii), and official gold reserves (iii), along with SDRs and IMF reserve positions.
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UGC NET Commerce