2015 · EconomyPrevious Year Question
Q94.
The problem of international liquidity is related to the non-availability of
A. goods and services
B. gold and silver
C. dollars and other hard currencies
D. exportable surplus
Answer

C

Explanation

Refers to the adequacy of a country's, or the world's, international reserves. Under the Bretton Woods System, liquidity was a problem, since it depended on US dollars and thus a US deficit.