Question

Which of the following options describe debt trap?

a) Demand deposits with bank.

b) Situation when it becomes impossible for the borrower to repay the

loan and the borrower adds on a new debt to pay the existing debt.

c) Cheap and affordable credit.

d) Paper instructing bank to specify amount from the person’s

account to the person in whose name it has been made.​

Answer 1

situation when it becomes impossible for the borrower to repay the loan and the borrower adds on a new debt to pay the existing debt

Answer 2

option (b) is the correct answer. situation when it becomes impossible for the borrower to repay the loan and the borrower adds on a new debt to pay the existing debt .