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Question

Debt service ratio for India is _________ by international standards.

A
high
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B
low
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C
very low
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D
none of above
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Solution

The correct option is A high
Debt service ratio is the ratio of debt service payments ( principal + interest ) of a country to that country's export earnings. A country's international finances are higher if this ratio is low. Hence, according to international standards debt service ratio of India is high.

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