Answer: Country Z

## Explanation Country Z is most vulnerable to a currency crisis based on the given economic conditions: **Key Factors Making Country Z Vulnerable:** 1. **Low Foreign Exchange Reserves**: Country Z has low foreign exchange reserves, meaning it has limited ability to defend its currency in case of speculative attacks. 2. **Low Export-to-Import Ratio**: A low ratio indicates a trade deficit, which puts downward pressure on the currency as more foreign currency is needed to pay for imports than is earned from exports. 3. **High Broad Money Growth**: High money growth typically leads to inflation, which can cause currency depreciation and make the country more vulnerable to capital flight. **Comparison with Other Countries:** - **Country X**: Has high foreign exchange reserves (protective) and low money growth (stable), making it less vulnerable. - **Country Y**: Has high export-to-import ratio (favorable) and low money growth (stable), though low reserves are a concern. **Conclusion**: The combination of low reserves, trade deficit, and high money growth makes Country Z the most vulnerable to a currency crisis.

Author: LeetQuiz Editorial Team