ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A debt is the sum of money that is borrowed for a certain period of time and is to be return along with the interest. The amount as well as the approval of the debt depends upon the creditworthiness of the borrower. There are different types of debts that vary with the requirements of the borrower.

Detailed explanation-2: -The borrower must pay back the amount that was borrowed to the lender. This is known as the principal loan amount. The loan agreement will outline when and how the repayments must be made. In most cases, the full amount of the loan must be paid on one date, or it can be paid in instalments over time.

Detailed explanation-3: -Borrower’s Responsibilities: Make loan payments on time. Make payments despite nonreceipt of bill. Notify servicers of changes to your contact or personal information.

Detailed explanation-4: -Financial obligations represent any outstanding debts or regular payments that a party must make. For example, if you owe or will owe money to anybody, that is one of your financial obligations. Almost any form of payment or financial security represents a financial obligation.

Detailed explanation-5: -Different types of debt include secured and unsecured debt or revolving and installment. Debt categories can also include mortgages, credit card lines of credit, student loans, auto loans, and personal loans.