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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