15-65 High rates of domestic inflation impact the credit scoring model of sovereign country risk exposure through which of the following variables?

Question

Quizplus · Accepted Answer

High rates of domestic inflation impact the credit scoring model of sovereign country risk exposure through the domestic money supply growth variable. This is because inflation leads to an increase in the domestic money supply, which can lead to a decrease in the value of the currency and may affect the ability of the country to repay its debts.

15-65 High Rates of Domestic Inflation Impact the Credit Scoring