AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Answer: B
A debt trap is a situation where the borrower's debt keeps growing and recovery becomes very painful — as seen in Swapna's case where crop failure made repayment impossible, forcing her to sell land.
Source: Money and Credit, Chapter 3
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The textbook explicitly defines debt trap using Swapna's example: "Credit pushes the borrower into a situation from which recovery is very painful." Options A, C, and D describe unrelated concepts (profitable credit, government schemes, and collateral respectively). For MCQs, always link your answer to the textbook definition to confirm your choice.