The correct answer is A. Foreign exchange reserves and gold reserves are included in international liquidity. Borrowing capacity is not included in international liquidity.
International liquidity is a measure of the ability of a country to meet its international financial obligations. It is typically measured by the country’s foreign exchange reserves, gold reserves, and borrowing capacity.
Foreign exchange reserves are the stock of foreign currencies that a country holds. They are used to finance international trade and payments, and to intervene in the foreign exchange market.
Gold reserves are the stock of gold that a country holds. They are used as a store of value and as a means of payment.
Borrowing capacity is the ability of a country to borrow money from international financial institutions. It is determined by the country’s creditworthiness, which is based on factors such as its economic performance, its political stability, and its debt levels.
Borrowing capacity is not included in international liquidity because it is not a direct measure of a country’s ability to meet its international financial obligations. A country with a high borrowing capacity may not be able to meet its obligations if it experiences a sudden economic downturn or political crisis.