Which of the Following Statements Regarding Total Debt Service Ratio

question 77

Multiple Choice

Which of the following statements regarding total debt service ratio (TDSR) are untrue?

• A)TDSR = total debt services minus exports
• B)The ratio of a country's principal repayments and interest paid to the value of its exports.
• C)The larger the debt repayments are in relation to export revenues, the greater the probability that the country will have to reschedule its debt.
• D)There should be a positive relationship between the size of the total debt service ratio and the probability of rescheduling.
• E)None of the statements are untrue.

---

Definitions:

Flexible Budget

A budget that adjusts or changes according to the volume of output or the level of activity achieved.

Tenant-Days

A metric used in real estate to measure the total number of days that tenants occupy a property within a specific period.

Administrative Expenses

Administrative expenses comprise costs related to the general operation of a business that are not directly tied to production or sales, such as salaries of office staff and office supplies.

Planning Budget

A budget created at the beginning of the budgeting period that is based on planned levels of activity for the period.