Which One of the Following Historical Events Made Country Risk

question 21

Multiple Choice

Which one of the following historical events made country risk analysis an important part of international banking?

• A) the 1973 oil crisis
• B) the 1996 Mexican peso crisis
• C) the 2006 Bolivian government's expropriation of gas fields
• D) the 1980 debt crisis

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Definitions:

Profit Margin

A financial metric used to assess a company's profitability by comparing net income to sales; calculated as (Net Income / Sales) * 100.

Income From Operations

The earnings generated from a company’s core business activities, excluding any gains or losses from investments and other non-operational sources.

Invested Assets

Assets acquired by a company or individual as a means of generating future income.

Investment Turnover

A measure of a company's efficacy in using its assets to generate revenue, calculated by dividing sales by the average investment.