The Guidotti-Greenspan Rule Suggests That Foreign Exchange Reserves a Sufficient

question 29

Multiple Choice

The Guidotti-Greenspan rule suggests that foreign exchange reserves a sufficient when they

• A) Cover 3 months of imports
• B) are equal to 20% of GDP
• C) are equal to the value of foreign currency debt
• D) are equal to 20% of M2
• E) are equal to short term debt of one year maturity or less

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