Debt service is the
A) difference between merchandise exports and merchandise imports
B) interest payments on investments divided by the amount of unilateral transfers
C) percentage that interest payments on international debt is of a nation's exports
D) international debt
E) value of a nation's merchandise exports minus the value of its merchandise imports

Question

Quizplus · Accepted Answer

Debt service refers to the cash required to cover the repayment of interest and principal on a debt for a particular period. In the context of international debt, it often relates to the percentage of a nation's exports needed to cover these payments, making option C the correct answer. Options A and E describe the trade balance, B is unrelated to the concept of debt service, and D simply defines international debt without addressing the concept of servicing that debt.

Debt Service Is the