Exam 12: Sovereign Risk

Which of the following are normally traded at very deep discounts from 100 per cent?

LDC debt can be bought and sold in secondary markets.

Which of the following is an adequate definition of a Brady bond?

The Heritage Foundation defines 'economic freedom' as 'the absence of government coercion or constraint on the production, distribution or consumption of goods and services beyond the extent necessary for citizens to protect and maintain liberty itself'.

Which of the following statements is true in relation to the Euromoney Index?

Concessionality refers to the amount a bank gives up in:

Which of the following are risk factors that might influence the variability of a country's export revenues?

Multi-year restructuring agreement (MYRA) is the official term for the:

The sovereign risk assessment methods most commonly used by large FIs are logit and probit models.

The investment ratio measures the degree to which a country is allocating resources to:

What are the major advantages and disadvantages of using scoring models to assess country risk?

Some factors that are built into Multi-year restructuring agreements (MYRAs) are:

Both buyers and sellers of LDC debt seem willing to participate in the LDC debt markets for the purpose of rebalancing the country risk exposure on their balance sheets.

Which of the following is not a country risk assessment service available to outside investors?

Which of the following statements is true?

Which of these are major segments of the secondary market for LCD debt?

Which of the following describes debt moratoria?

Which of the following statements is true?

One reason why debt rescheduling is easier than debt repudiation is that many international loan contracts contain cross-default provisions that serve to prevent a country from selecting a group of weak lenders for special default treatment.

Debt repudiation is the: