The Following Is an Example of a Credit Scoring Model

Multiple Choice

The following is an example of a credit scoring model to estimate the probability of debt rescheduling for country I:

P_i = 0.25DSR_i + 0.17IR_i - 0.03 INVR_i + 0.84VAREX_i + 0.93 MG_i

Where P_i is the probability of rescheduling country I's debt;DSR is the country's 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 country I is providing several incentives to increase domestic savings?

A) The debt service ratio.
B) The import ratio.
C) The investment ratio.
D) The variance of export revenue.