ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Debtors are individuals or businesses that owe money. Debtors can owe money to banks, or individuals and companies. Debtors owe a debt that must be paid at some time in the future.

Detailed explanation-2: -A liability is something a person or company owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services.

Detailed explanation-3: -A debt is an amount of money that you owe someone.

Detailed explanation-4: -The principal–the money that you borrow. The interest–this is like paying rent on the money you borrow.

Detailed explanation-5: -If you’ve borrowed money from friends, family, or anyone else and promised to repay them, then you are “indebted” to pay it back. This is called “debt.” Debt is money one person, organization, or government owes to another person, organization, or government.