A) It has to abide by the conditionality imposed by the International Monetary Fund
B) It has to borrow to make interest payments on outstanding loans
C) It has been refused loans or aid by creditors abroad
D) The World Bank charges a very high rate of interest on outstanding as well as new loans.
Correct Answer: B
Solution :[b] Debt Trap is a situation in which a debt is difficult or impossible to repay, typically because high interest payments prevent repayment of the principal.
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