Which of the following best describes the term 'import cover', sometimes seen in the news?

1. A

   It is the ratio of value of imports to the Gross Domestic Product of a country

   Imports to GDP. That ratio is import intensity or openness, not import cover. This letter is not the key.

2. B

   It is the total value of imports of a country in a year

   Total yearly imports. A stock of imports in a year is not a reserve-adequacy measure. This letter is not the key.

3. C

   It is the ratio between the value of exports and that of imports between two countries

   Exports versus imports between two countries. That is a bilateral trade balance idea, not import cover. This letter is not the key.

4. D

   It is the number of months of imports that could be paid for by a country's international reserves

   Months of imports payable from international reserves. Import cover is how many months of merchandise (often goods) imports the central bank’s foreign-exchange reserves could finance. That stored letter is the official key.

Summary. Official key is (d) months of imports that reserves could pay for. Import cover is a reserve-adequacy yardstick, not an import/GDP ratio, an annual import total or a bilateral export–import ratio. Honour the stored letter (d).