Question
In the context of credit risk assessment, which of the
following metrics would be the most reliable for an MSME lender to assess the long-term financial stability of a business, especially when the company is facing difficulties in the international markets?Solution
The Debt-Service Coverage Ratio (DSCR) measures an MSME’s ability to meet its debt obligations from its operating income. A higher DSCR indicates that the company is generating enough cash to service its debt, which is particularly important when the firm is facing challenges in international markets that could affect its revenues. This ratio provides a more accurate picture of long-term financial stability compared to other liquidity or profitability ratios.
Park Test is used for which of the following?
If Y = -10X and X = -0.1Y, then r is equal to:
 If r xy = 0, then:
In a two-sector economy, the consumption function is given as:
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The credit manager at a Departmental store collects data on 100 of her customers. Of the 60 men, 40 have credit cards (C). Of the 40 women, 30...
A society in which there was garbage collection problem. But there was voluntary problem of payment so some people would participate and some wouldn’t...
 For the 2 variables x and y with the same mean, the regression equation are y = 5x+b and x=7y +c. Calculate b/c
For n=100, given that the regression of X on Y is 4Y-6X+240 = 0 The mean of Y=100 and variance of X is 4/9 times the variance of Y. Calculate the coeffi...
Consider A’s utility function to be U(x,y)=(min{X,Y})1/2, the price of good X is Rs.2 and price of good Y is Rs.1. Calculate the total Util...
