Single Answer MCQ
Q-00045439
Which statement best describes a debt trap?
1
Increased profits from investments
2
A situation of heavy borrowing leading to insolvency
3
Success in crop production
4
Receipt of government subsidies
Answer and Solution
Answer
B. A situation of heavy borrowing leading to insolvency
Solution:
A debt trap occurs when a person is unable to repay their loans, leading to a spiral of increasing debt, as seen in Swapna's case.
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