THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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National Debt
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Community Debt
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Personal Debt
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Major Debt
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Detailed explanation-1: -What Is a Default? Default is the failure to make required interest or principal repayments on a debt, whether that debt is a loan or a security. Individuals, businesses, and even countries can default on their debt obligations. Default risk is an important consideration for creditors.
Detailed explanation-2: -Absence of collateral security prevents the poor from getting bank loans.
Detailed explanation-3: -Collateral gets affected While this is the last resort, banks can rightfully take possession of the collateral and auction it to recover the loan amount if you fail to repay the loan.
Detailed explanation-4: -Defaulting on a personal loan could result in: Trouble securing credit in any form for years to come. Difficulty locking in a good interest rate even if you’re able to secure credit in the future. Wage garnishment, if the loan was unsecured. Seizure of assets, if the loan was secured.