Question

Import cover is crucial for maintaining a stable currency and avoiding a balance of payments crisis. Which of the following ratio best reflects the import cover of a nation?

A Current Account Balance ÷ Fiscal Deficit
B Capital Account Inflows ÷ Foreign Exchange Reserves
C Foreign Exchange Reserves ÷ Average Monthly Imports
D Foreign Exchange Reserves ÷ External Debt
E GDP ÷ Foreign Exchange Reserves
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