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

The correct answer is dollars and other hard currencies.

• The concept of international liquidity is associated with international payments that arise out of international trade in goods and services.
• International liquidity consists of all the resources that are available to the monetary authorities of countries for the purpose of meeting balance of payments deficits.
• Such liquidity ranges from assets readily available to resources that become available only after extensive negotiation.
• The primary medium of international liquidity are gold and those foreign currencies which are universally acceptable in the settlement of international transactions.
• The problem of international liquidity exists essentially for developing countries.