Liquidity refers to the amount of international reserve assets available to settle long-term balance-of-payments disequilibria.

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Liquidity refers to the ease with which an asset can be converted into cash. International reserve assets are used to support a country's currency and are typically held by central banks to maintain their monetary and financial system stability. While they can help in addressing balance-of-payments issues, they do not necessarily determine the overall level of liquidity in the economy.

Liquidity Refers to the Amount of International Reserve Assets Available