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Single Answer MCQ
Q-00015890

What term refers to the situation where a borrower cannot repay their loan despite making efforts?

1

Debt consolidation

2

Default

3

Debt-trap

4

Loan forgiveness

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Sandeep Chaturvedi

Sandeep Chaturvedi

CBSE Social Science & Humanities Reviewer

Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

M.A. HistoryM.A. Political ScienceB.Ed.

Answer and Solution

Answer

C. Debt-trap

Solution:

The term 'debt-trap' describes a situation of escalating debt due to inability to repay, making option C correct. The other options depict different financial terms.

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