A Possible Reason for the High Systematic Risk of Debt

question 46

Multiple Choice

A possible reason for the high systematic risk of debt service ratio (DSR) is the:

• A)tendency of world commodity prices to reflect non-similar economic conditions
• B)sensitivity of this ratio to rising nominal and real interest rates in the developed countries
• C)tendency of prices and world demands for commodities to reflect simultaneously economic conditions
• D)discretionary nature of money supply growth for LDC governments

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