Detailed Explanation:

International liquidity refers to the availability of foreign exchange reserves (primarily hard currencies like the US Dollar, Euro, Yen, and Pound Sterling) that a country holds to meet its short-term international payment obligations.

The problem of international liquidity arises when there is a shortage of reserve currencies needed for import payments, debt servicing, and foreign exchange market interventions, not a lack of physical goods, precious metals, or exportable surplus.