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Question #49353

The debt-service ratio is the______________?

Options:

A) long-term debt divided by GDP of a country in a given year

B) interest and principle payments divided by exports of goods and services

C) ratio of debt net of portfolio investment financing and foreign direct investment

D) default and reschedule debt minus annual export revenues that must be devoted to paying interest

Answer: The debt-service ratio is the interest and principle payments divided by exports of goods and services.

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