Credit, Debt, and Finance

Option (1) is correct: Debt collectors have a limited number of years to collect their debts. They can sue for the debt in that particular time, which is 3 years. After that, debts become time-barred debts and they are irrecoverable.

Directed credit refers to government policies that require banks to lend a specific portion of their funds to priority sectors, such as agriculture or small-scale industries.

The IMF's capital is primarily derived from quota subscriptions paid by its member countries, which reflect their relative size in the global economy.

The subprime crisis is widely known as the mortgage crisis because it was triggered by the widespread default on subprime mortgages in the United States.

LIC generally grants policy loans up to 90 percent of the surrender value for policies that have acquired a surrender value.

Right answer Becasue it is a human cause, since if a customer or debtor is insolvent, he cannot pay the amount due which results in bad debts or loss for the business.

EMI (Equated Monthly Installment) is a common repayment method used across various loan types, including personal, home, and consumer loans, to spread the principal and interest over a fixed period.

The Reverse Mortgage Loan Scheme allows senior citizens to mortgage their residential property to receive a regular stream of income from a bank. It is designed to provide financial security in retirement.

Anticipated deflation is when nominal rates fall.

A debenture is a debt instrument used by companies to borrow money at a fixed interest rate. It is essentially a loan certificate issued by the company to the investor.

(1) Colleague = a person working in the same institution (2) Contemporary = persons living at the same time (3) Bankrupt = the one who cannot pay off his debts (4) Domicile = a place of permanent residence

External debt includes liabilities owed by the government, private corporations, and households to non-residents, regardless of the borrower's sector.

Convertible debentures provide the holder with the option to convert their debt instrument into equity shares of the company after a specified period.

Redeemable debentures are long-term liabilities, not current liabilities, as they are typically repayable over a period exceeding one year. Bank overdrafts, provisions for doubtful debts, and accounts payable are all standard current liabilities.