Question

in situations with high risk, credits might create further problems for the borrower. explain in 40-50 words.

Answer 1

Answer:

In situations with high risks, credit might create further problems for the borrower. This is also known as a debt-trap. Taking credit involves an interest rate on the loan and if this is not paid back, then the borrower is forced to give up his collateral or asset used as the guarantee, to the lender.

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Answer 2

Answer:

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Explanation:

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