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What is defaulting?

  1. Failing to show up for work

  2. Not paying back your loans

  3. Reneging on a contract agreement

  4. Breaking a business deal

The correct answer is: Not paying back your loans

Defaulting refers to the failure to pay back a loan on time or in full. Options A, C, and D may also involve failing to fulfill an obligation, but they specifically refer to other types of agreements or commitments. Option A is more specific to employment, option C is specific to a legal contract, and option D could encompass a wide range of business-related agreements. However, defaulting specifically refers to not paying back a loan.