From the given options, select the word that correctly substitutes the expression-
“A person unable to pay his debts”
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Bankrupt
| Word | Meaning | Example |
|---|---|---|
| (1) Debtor | anyone who owes money (most debtors can and do pay back, and the word does not say that the person is unable to pay) | The bank sent a reminder to every debtor whose loan was due. |
| (2) Bankrupt (answer) | a person (or company) unable to pay his debts, usually declared so by a court | After the factory closed, the owner was declared bankrupt. |
| (3) Creditor | the person or bank to whom money is owed, the opposite side of a debt | The company sold its land to pay its creditors. |
| (4) Cashier | a person who receives and pays out money in a shop or bank | The cashier counted the notes twice. |