1432EconomicsMedium
The debt-service ratio is the________?
Ainterest and principle payments divided by exports of goods and services
Bdefault and reschedule debt minus annual export revenues that must be devoted to paying interest
Cratio of debt net of portfolio investment financing and foreign direct investment
Dlong-term debt divided by GDP of a country in a given year
Correct answer
A. interest and principle payments divided by exports of goods and services
Explanation
The correct answer is interest and principle payments divided by exports of goods and services.