In the context of development, the 'Poverty Trap' refers to:
A. A self-reinforcing mechanism that causes poverty to persist
B. A temporary decline in income
C. A situation that always disappears automatically
D. Only the absence of foreign aid
Answer: Option A
Solution (By JKSSB Mock Tests)
A poverty trap is a self-perpetuating condition in which an economy or household remains poor because the existing level of poverty itself prevents the accumulation of capital or adoption of better technologies.
Explanation:
Call money market is a part of the money market (short-term). Capital market deals with long-term funds and includes stock exchanges, mutual funds and insurance companies.
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