Which of the following statements is true?

Question

Quizplus · Accepted Answer

The statement that the most common approach to evaluating country risk among large FIs is to develop sovereign country risk scoring models based on economic ratios for each country is true. This approach evaluates factors such as inflation rates, GDP growth, and external debt, which are related to a country's economic stability and likelihood to repay its debts. Political, industry, and financial performance ratios may also be considered, but economic ratios are typically the primary focus.

Which of the Following Statements Is True