Critics of Debt Relief Make All of the Following Arguments

question 90

Multiple Choice

Critics of debt relief make all of the following arguments except

• A)it would be wasted money since the conditions that caused the debt would be likely to persist.
• B)debt relief can quickly fuel a new round of borrowing that simply restores debt to prior levels.
• C)debt relief will encourage other nations to borrow excessively with the hope that their debts may be forgiven in the future.
• D)the cost of debt relief to the most severely indebted countries is too large for the high income countries to afford.

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Definitions:

Bankruptcy Abuse

Activities that exploit the bankruptcy system in a deceitful or fraudulent manner to gain undue advantage or evade debt obligations.

Debtor's Income

The amount of money received by an individual or entity who owes a debt to another party.

Bankruptcy Trustee

A person appointed by the court to manage the debtor’s funds in a bankruptcy proceeding.

Debtor's Estate

The total sum of a debtor's legal rights, obligations, and owned property that might be used to repay debts.