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      Question

      What is 'Technical Debt' in software

      development?
      A The financial cost of software licenses and infrastructure Correct Answer Incorrect Answer
      B Penalties incurred for late software delivery to clients Correct Answer Incorrect Answer
      C The budget allocated for maintaining legacy systems Correct Answer Incorrect Answer
      D The cost of training developers on new technologies Correct Answer Incorrect Answer
      E The implied cost of future rework Correct Answer Incorrect Answer

      Solution

      Technical debt (coined by Ward Cunningham) is the trade-off between short-term speed and long-term code quality. Like financial debt, it accrues "interest" i.e. the longer it is unaddressed, the harder and costlier it becomes to fix. Examples: hardcoded values instead of configuration files, skipping unit tests for faster delivery, not refactoring complex code. Banks with decades-old COBOL core banking systems carry enormous technical debt β€” modernization projects (like migrating to microservices) are driven by the need to repay this debt.

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