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?
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.