The debt-service ratio refers to the:
A) ratio of debt to interest.
B) percentage of debt to equity.
C) ratio of output produced to the labour and capital inputs used.
D) percentage of export earnings used to pay interest on debt.

Question

Quizplus · Accepted Answer

The debt-service ratio specifically refers to the percentage of a country's export earnings that are used to pay interest on its external debt. This is an important indicator of a country's financial health and its ability to manage and service its external debt obligations.

The Debt-Service Ratio Refers to The