GyanGram
ATTEMPT · INDIAN ECONOMY · PRELIMS 2016
Which of the following best describes the term “import cover”, sometimes seen in the news?
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Which of the following best describes the term “import cover”, sometimes seen in the news?
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• Correct Answer: D
• Import cover measures the number of months a country's international reserves can finance its imports.
• It is a key indicator of external sector stability and reserve adequacy.
• A, B, C are wrong: import cover is not import-to-GDP ratio, total import value, or export-import ratio.
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