Select the correct code of the following statements being correct or incorrect.
Statement (I) : International liquidity encompasses the international reserves only.
Statement (II) : International liquidity covers only official holdings of gold, foreign exchange, SDRs and reserve position in the IMF available for the settlement of the international transactions.
1
Both the statements are correct.
2
Both the statements are incorrect.
3
Statement (I) is correct while Statement (II) is incorrect.
4
Statement (I) is incorrect while Statement (II) is correct.