15-61 Commodity price and quantity risk is measured by which of the following variables in the credit scoring model to estimate sovereign country risk exposure?

Question

Quizplus · Accepted Answer

The variance of export revenue is a measure of a country's exposure to commodity price and quantity risk. Fluctuations in commodity prices and quantities can affect a country's export revenue, which in turn can impact the country's ability to service its debt obligations. Therefore, this variable is used in the credit scoring model to estimate a country's sovereign risk exposure. The other variables listed do not specifically measure commodity price and quantity risk.

15-61 Commodity Price and Quantity Risk Is Measured by Which