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Question

Which of the following statements is true about Debt-Service Ratio?

A Ratio of debt service payments (principal + interest) of a country to that country’s export earnings Correct Answer Incorrect Answer
B Ratio of debt service payments (principal + interest) of a country to that country’s total GDP Correct Answer Incorrect Answer
C Ratio of debt service payments (principal + interest) of a country to that country’s Foreign exchange reserve Correct Answer Incorrect Answer
D Ratio of country’s export earnings to that debt service payments (principal + interest) of a country Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

The correct answer is A

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