If a nation with a balance-of-payments deficit is willing and able to initiate quick actions to increase export receipts and decrease import payments,the amount of international reserves needed will be relatively large.

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If a nation is able to quickly increase export receipts and decrease import payments, it will reduce its balance-of-payments deficit and its need for international reserves will decrease. This is because a balance-of-payments deficit means that a country is spending more on imports than it is earning through exports, leading to a decrease in its foreign exchange reserves. By increasing exports and decreasing imports, the country will earn more foreign exchange and reduce its reliance on reserves.

If a Nation with a Balance-Of-Payments Deficit Is Willing and Able