Multiple Choice
The following is an example of a credit scoring model to estimate the probability of debt rescheduling for country I: Pi= 0.25DSRi+ 0.17IRi- 0.03 INVRi+ 0.84VAREXi+ 0.93 MGi
Where Pi is the probability of rescheduling country I's debt; DSR is the country's total debt service ratio; IR is the country's import ratio; INVR is the country's investment ratio; VAREX is the country's variance of export revenue; and MG is the country's rate of growth of the domestic money supply.
What is an important determinant of rescheduling probability if inflation is a prime concern?
A) The total debt service ratio.
B) The import ratio.
C) The investment ratio.
D) The variance of export revenue.
E) The rate of growth of the domestic money supply.
Correct Answer:

Verified
Correct Answer:
Verified
Q53: The advantage to the lender (purchaser) of
Q54: Each of the variables in the credit
Q55: Which of the following is true of
Q56: The following is an example of a
Q57: International bond finance is more likely to
Q59: In exchange for the loss of some
Q60: The Economist Intelligence Unit is a rating
Q61: A lending decision to a firm in
Q62: The statistical results of the country risk
Q63: The following is an example of a