A farmer took a loan for agriculture, but unfortunately could not repay the loan. So, the farmer took another loan to repay the previous loan. What is this condition called?
A
Debt cycle
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B
Debt trap
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C
Debt load
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D
Debt of debt
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Solution
The correct option is B Debt trap Sometimes when a person cannot repay a loan, they tend to take another loan to repay the previous one. This vicious cycle is known as a debt trap. Most farmers and poor people are victims of this situation.