Official Answer Key & Detailed Solution
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Correct Answer: Option (C) — dollars and other hard currencies
Concept & Option Breakdown
Standard Reference VerifiedInternational liquidity refers to the availability of internationally accepted reserve assets (principally US dollars and other convertible hard currencies) required by countries to settle international balance-of-payments obligations and finance global trade.
In international trade finance, 'liquidity' refers to readily acceptable global exchange media, i.e., hard currencies.
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