Explanation
- 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.
- 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.
- 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.
- 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).
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2024 · Q92 · General Studies · 2 marks
Consider the following statements : Statement-I : India does not import apples from the United States of America. Statement-II : In India, the law prohibits the import of Genetically Modified food without the approval of the competent authority. Which one of the following is correct in respect of the above statements ? -
2016 · Q3 · General Studies · 2 marks
There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit? 1. Reducing revenue expenditure 2. Introducing new welfare schemes 3. Rationalizing subsidies 4. Reducing import duty Select the correct answer using the code given below