A Possible Reason for the High Systematic Risk of Debt

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