The problem of international liquidity is related to the non-availability of

1. International liquidity refers to the pool of assets that are readily available and acceptable for settling international payments and financing balance of payments deficits. 2. These assets primarily consist of reserves held by central banks, which include foreign exchange reserves (especially key hard currencies like the US dollar, Euro, Yen, etc.), gold, Special Drawing Rights (SDRs) issued by the IMF, and reserve positions in the IMF. 3. The 'problem of international liquidity' arises when there is a perceived shortage or inadequate supply of these internationally accepted reserve assets relative to the needs of global trade and finance. 4. Therefore, the problem is most directly related to the non-availability (or shortage) of dollars and other hard currencies, which form the largest component of international liquidity (Option C). 5. Option (A) relates to trade deficits, which might create a demand for liquidity, but liquidity itself refers to the means of payment, not the goods and services. 6. Option (B) Gold is a component of liquidity, but silver is not generally considered an international reserve asset. The primary issue revolves around widely accepted currencies. 7. Option (D) relates to a country's trade balance, which influences its need for or ability to accumulate liquidity, but is not liquidity itself.