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

Choose the correct answer from the code given below:

International Liquidity: -

• These are the assets that are internationally accepted payment mediums approved by international trading partners.
• Its value does not depreciate in the discharge of debt(on external accounts).
• It is the financial resources available to national monetary authorities and financial institutions to finance their balance of payment deficit.

• The various components of International Liquidity are-
  1. Gold held by the central banks of the nations.
  2. Foreign exchange owned by central banks.
  3. Borrowing facilities available from the International monetary fund, which includes the Tranche position representing the 'drawing potential' of the member nations of the IMF.
  4. Credit facilities available under swap agreements.
     • Gold and the Currency Dollar have greater importance and impacting factor in determining the International Liquidity of the Global Economy.

Therefore, Option 4 is the right answer.