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DSCR stands for:

Solution

✅ Correct Option: 2

Option 1 -> Debenture Service Coverage Ratio - Incorrect term; DSCR relates to all debt obligations, not just debentures specifically.

Option 2 -> Debt Service Coverage Ratio - This is the correct full form; a financial metric measuring ability to service debt with operating income.

Option 3 -> Debt Service Cost Ratio - Incorrect; the "C" stands for Coverage, not Cost.

Option 4 -> Debt Social Coverage Ratio - Incorrect; "Social" is not part of the financial term DSCR.


Hence, Option 2: Debt Service Coverage Ratio -> DSCR is a key financial metric used by lenders and investors to assess a company's or individual's ability to generate enough income to cover debt obligations (principal and interest payments). It is calculated as Net Operating Income divided by Total Debt Service. -> correct

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