Both the debt service ratio and the import ratio typically have low systematic risk elements in a country risk analysis (CRA).

Question

Quizplus · Accepted Answer

Both the debt service ratio and import ratio can be affected by macroeconomic factors and external shocks, making them vulnerable to systematic risk. For example, a sudden increase in interest rates or a global recession can impact a country's debt service ratio and import ratio, increasing their systematic risk. Therefore, both ratios should be considered in a comprehensive CRA.

Both the Debt Service Ratio and the Import Ratio Typically