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1. Styles A Financial Institution Manager has obtained the following information from a foreign country with a view to assessing its credit risk and the

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1. Styles A Financial Institution Manager has obtained the following information from a foreign country with a view to assessing its credit risk and the likelihood of having to reschedule a loan: Interest including amortization on debt: $54 million Value of Exports: $36 million. Value of Total Imports: $30 million Total Foreign Exchange Reserves: $15 million Gross Investment: $700 million Inflation Rate: 8% Gross Domestic Product: 4 billion Receipt of Factor Incomes from the rest of the world: $7 million Payment of Factor Incomes to the rest of the world: $5 million The Standard Deviation of Export Revenue is: 0.8. In year 1, the level of Money Supply in circulation was estimated to be $500 million and in Year 2, the money supply had grown to $515 million. (a) From the information provided, determine the corresponding values of each of the following variables. DSR, IR, INVR, VAREX, and MG ((DSR=Debt Service Ratio: IR=Import Ratio: INVR=Investment Ration; VAREX=Variance of Export Revenue; MG=Domestic Money Supply) (15 points). 1. Styles A Financial Institution Manager has obtained the following information from a foreign country with a view to assessing its credit risk and the likelihood of having to reschedule a loan: Interest including amortization on debt: $54 million Value of Exports: $36 million. Value of Total Imports: $30 million Total Foreign Exchange Reserves: $15 million Gross Investment: $700 million Inflation Rate: 8% Gross Domestic Product: 4 billion Receipt of Factor Incomes from the rest of the world: $7 million Payment of Factor Incomes to the rest of the world: $5 million The Standard Deviation of Export Revenue is: 0.8. In year 1, the level of Money Supply in circulation was estimated to be $500 million and in Year 2, the money supply had grown to $515 million. (a) From the information provided, determine the corresponding values of each of the following variables. DSR, IR, INVR, VAREX, and MG ((DSR=Debt Service Ratio: IR=Import Ratio: INVR=Investment Ration; VAREX=Variance of Export Revenue; MG=Domestic Money Supply) (15 points)

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