The Allocation of Country Resources Between Present and Future Consumption

question 2

Multiple Choice

The allocation of country resources between present and future consumption is measured by which of the following variables of the credit scoring model of sovereign country risk exposure?

• A)The debt service ratio.
• B)The import ratio.
• C)The variance of export revenue.
• D)The investment ratio.
• E)Domestic money supply growth.

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Definitions:

Section 1231

A section of the U.S. tax code that allows for the favorable tax treatment of gains and losses on the sale or exchange of business property.

Aggregate

is the total amount or sum of individual parts combined.

Ordinary

Refers to income or transactions that are common or usual within the context of business and taxes.

Donee's Basis

The value assigned to a gift or inherited property for the purpose of determining gain or loss when the property is sold by the recipient.