Question

In situation with high risk,credit might create further problems for the borrower.explain.​

Answer 1

Yes, In situation of high risk credit will create more problem due to bankruptcy.

Step-by-step explanation:

I Think if business will buy more credit in times of high risk then business will end up in stage of bankcruptcy because in that situation business will making poor profits and no revenue so it won't be able to pay back debt.