Consider the following statements:1.China is lending to most of the countries under the Belt and Road Initiative.2.In an economy, a haircut happens when central bank hikes the repo rate.3.The debt-trap diplomacy is mostly followed by the US.Which of the statements given above is/are correct?

Q. Consider the following statements::
1.China is lending to most of the countries under the Belt and Road Initiative.
2.In an economy, a haircut happens when central bank hikes the repo rate.
3.The debt-trap diplomacy is mostly followed by the US.
Which of the statements given above is/are correct?

[A] 1 only

[B] 1 and 3 only

[C] 2 and 3 only

[D] 2 only

Answer: A

Notes:

Explanation –

Statement 1 is correct. China is lending to most of the countries under the Belt and Road Initiative.

Statement 2 and 3 are incorrect. In an economy, haircut means when bank accepts less than what was due in a particular loan account. The debt-trap diplomacy is mostly followed by China.

Source: ForumIAS

Q. Consider the following statements::
1.China is lending to most of the countries under the Belt and Road Initiative.
2.In an economy, a haircut happens when central bank hikes the repo rate.
3.The debt-trap diplomacy is mostly followed by the US.
Which of the statements given above is/are correct?

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Q. Consider the following statements:: 1.China is lending to most of the countries under the Belt and Road Initiative. 2.In an economy, a haircut happens when central bank hikes the repo rate. 3.The debt-trap diplomacy is mostly followed by the US.Which of the statements given above is/are correct?