Question: Both Countries A and B have a total FX reserves of USD 15 Billion. Total annual imports for Country A reached USD 3 Billion, and
Both Countries A and B have a total FX reserves of USD 15 Billion. Total annual imports for Country A reached USD 3 Billion, and USD 5 Billion for Country B during the past year. Which of the below is most accurate?
a.
Country A has a higher PD since it has an Import Ratio of 20%.
b.
Country A has a higher PD since it has an Import Ratio of 5.
c.
Country B has a higher PD since it has an Import Ratio of 33%.
d.
Country B has a higher PD since it has an Import Ratio of 3.
e.
Both countries have the same PD since they have the same FX reserves level.
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