A country is said to be in a debt trap if:

MCQ. A country is said to be in a debt trap if:

(a) it has to abide by the conditionalities imposed by the on outstanding International Monetary Fund

(b) it has to borrow to make interest payments loans

(c) it has been refused loans or aid by creditors abroad

(d) the World Bank charges a very high rate of interest on outstanding as well as new loans

Answer: (b) it has to borrow to make interest payments loans

 

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