A Possible Reason for the High Systematic Risk of the Debt

question 1

Multiple Choice

A possible reason for the high systematic risk of the debt service ratio (DSR) in LDCs and EMs is

• A)the tendency of world commodity prices to reflect non-similar economic conditions.
• B)the sensitivity of this ratio to rising nominal and real interest rates in the developed, or lending, countries.
• C)the tendency of prices and world demands for commodities to reflect simultaneously economic conditions.
• D)the discretionary nature of money supply growth for LDC governments.
• E)different demands for imports, and wide differences in the scale of vital imports across LDCs.

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Definitions:

Cockpit Crew

The personnel responsible for operating the flight controls and systems of an aircraft, typically including pilots and co-pilots.

Performing Stage

The final stage of group development where the group operates efficiently towards goal achievement.

Traveling

The act of moving from one place to another, typically over some distance and for various purposes such as exploration, recreation, or business.

Overly Polite

A behavior characterized by an excessive or unnecessary formality or courtesy toward others.