When a country is no longer willing or able to make the scheduled payments on its borrowed capital, this often develops into what is known as which of the following?
A)A lender of last resort condition
B)A debt crisis
C)A fluctuating loss economy
D)A decline in interest rate scenario

Question

Quizplus · Accepted Answer

A debt crisis occurs when a country cannot pay back or refinance its government debt without the assistance of third parties. This situation arises when the country has borrowed too much and is unable to make the scheduled payments on its debt.

When a Country Is No Longer Willing or Able to Make