Economics · International Business and Finance
Given below are two statements regarding international liquidity: Statement I: International liquidity encompasses international reserves only. Statement II: International liquidity covers only official holdings of gold, foreign exchange, Special Drawing Rights (SDRs), and reserve position in the IMF available for the settlement of international transactions. In light of the above statements, choose the correct answer:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement I is incorrect and Statement II is correct.
- 2Statement I is correct and Statement II is incorrect.
- 3Both Statement I and Statement II are incorrect.✓
- 4Both Statement I and Statement II are correct.
Correct answer
Both Statement I and Statement II are incorrect.
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