The term import cover, sometimes seen in the news, refers to the number of months of a country`s imports that could be paid for by its international reserves. This means that if a country`s imports cost $10 billion per month and its international reserves are $60 billion, then its import cover would be six months.

Option 4 correctly describes the meaning of import cover. The term is an important economic indicator as it reflects a country`s ability to pay for its imports and maintain its external payment obligations. A higher import cover implies a greater ability to withstand external economic shocks, such as fluctuations in commodity prices or adverse global economic conditions.

Import cover is a commonly used metric by international financial institutions such as the International Monetary Fund (IMF) and the World Bank. These institutions monitor import cover levels to determine a country`s external vulnerability and ability to manage its external payments.

In summary, Option 4 - "It is the number of months of imports that could be paid for by a country`s international reserves" best describes the term import cover.