Question

Which of the following statement is incorrect?

Select one:

a. International banks analyze country risk to determine which countries to travel to, the currencies to take for their trip, and determine how much interest there is for these locations.

b. Most of the answers are correct.

c. A large government deficit relative to GDP can be considered as one of the key indicators of high country risk.

d. The country risk analysis is the assessment of the potential risks and rewards associated with making investments and doing business in a country.

e. High frequency of government changes is one of the factors contributing to a country’s political instability.

Answer 1

Option B Most of the answers are correct only. 1. Yes, international banks can analyze the country risk, because of there it involves more currency. So most of the countries look at the interest rates of particular countries.

2 Yes, A large govt. deficit relative to GDP, it gives the negative signals for divestment the amount, because of country is in risk.

3. yes, it is also correct country risk analysis involves the potential risks and they analyze before investing money in country for doing business.

4. Yes it is also correct, frequent changes of Govt. indicates that country's political instability.