Ask Question
BusinessBusiness
26 April, 11:39

The peripheral country dilemma of having constantly to borrow in order to fund economic development is known as:

+2
Answers (2)
  1. 26 April, 12:24
    0
    debt trap

    Explanation:

    In simple words, debt trap refers to the situation when a company keeps on incurring debt for repaying off the loans taken earlier. It is called trap as the amount of interest on loan keeps on building up making it impossible for the firm to pay it off completely.

    Usually the firms starts getting in debt trap when they lack of funds or due to failure of the specific project for which the loans has been taken specifically. Once the firm gets inside such a situation stepping back becomes nearly impassible leading to complete shut down of the firm.
  2. 26 April, 14:33
    0
    The peripheral country dilemma of having constantly to borrow in order to fund economic development is known as DEBT TRAP

    Explanation:

    Debt traps is a situation in which it is difficult or not possible for a person that borrowed to pay back money that he has borrowed. These traps are usually caused by high interest rates and short terms, and are a hallmark of a predatory lending. Paying back borrowed money is paying back both the principal and the interest.

    A debt trap occurs when a borrower is unable to make payments on the loan principal; instead, they can only afford to make payments on the interest. Because making payments on the interest does not lead to a reduction in the principal, the borrower never gets any closer to paying off the loan itself.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The peripheral country dilemma of having constantly to borrow in order to fund economic development is known as: ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of the following is not characteristic of monopolistic competition? A) relatively large numbers of sellers C) production at minimum ATC in the long-run B) product differentiation D) relatively easy entry to the industry
Answers (1)
Assif mandvi's imitation of an american answering a call for "tech support" was an example of
Answers (1)
Choose the best response for each of the following statements. a. When the Federal Reserve makes an open market purchase, the Fed: buys bonds from the public, which decreases the money supply.
Answers (1)
A target audience is the group of customers that is singled out to be reached by an advertising campaign or other promotion. T/F
Answers (1)
A small business owner usually establishes a business for the main purpose of _.
Answers (1)
New Questions in Business
A building with a book value of $54,000 is sold for $63,000 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of a.
Answers (1)
What is a diversionary incentive? a. a temptation to switch trading partners to get a better deal b. an opportunity to change international agreements while other states are preoccupied with a conflict c. a payoff for avoiding war d.
Answers (1)
A business may decide to pay employee salaries every week, every two weeks, twice a month, or once a month. True or False?
Answers (1)
Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent annually. It has assets of $5 million with an average maturity of 5 years earning interest rates of 6.0 percent annually.
Answers (1)
Why does unoka consult the oracle? what does the oracle tell him?
Answers (1)
Home » Business » The peripheral country dilemma of having constantly to borrow in order to fund economic development is known as:
Sign Up Forgot Password?