A country owes $500 million in external debt. Its annual export earnings are $250 million. What is its debt-to-export ratio?

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Question

A country owes $500 million in external debt. Its annual export earnings are $250 million. What is its debt-to-export ratio?

Accepted Answer

200% — The debt-to-export ratio = (External debt ÷ Annual export earnings) × 100. Here: ($500m ÷ $250m) × 100 = 200%. Option A is the raw ratio without converting to a percentage, which is an incomplete answer. Option B inverts the calculation (250/500 × 100). Option D adds the two values instead of dividing.

Answer

125%

Answer

0.5

Answer

200%

Answer

750%

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