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The manager is considering the purchase of government bonds in either country A, B, or C. The manager notices that for country A, it has
- The manager is considering the purchase of government bonds in either country A, B, or C. The manager notices that for country A, it has a foreign exchanges/short term debt ratio of 150% and a debt to GDP ratio of 40%. For country B, foreign exchange/short term debt ratio is 79% and debt to GDP ratio is 87%. For country C, its economy is dominated by fishing industry and has a GDP in the most recent year of $80 billion. Which countrys government bonds do you want to purchase?
- Country A
- Country B
- Country C
- 1/3 into country A and the rest into country B
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