The man was arrested because he … in the repayment of the loan.

Step 1: Analyze the question We need the word that best fits "The man was arrested because he ____ in the repayment of the loan." The sentence gives a reason for arrest, so the missing word must describe a wrongful act, such as failing to meet an obligation.

Step 2: Explain the concepts

• Paused: stopped briefly. It doesn't suit a loan repayment and wouldn't normally lead to arrest.
• Delayed: took longer than expected. It is intransitive-friendly ("delayed in paying"), but it only suggests lateness and is not strong enough to justify an arrest.
• Deferred: postponed something. It is usually transitive ("deferred payment") and often done by agreement, so it is not wrongdoing. "Deferred in" is also not idiomatic.
• Defaulted: failed to fulfil a financial obligation. The idiom is "defaulted in the repayment" or "defaulted on a loan." This is what lenders and the law treat as an offence.

Step 3: Apply to the sentence "He defaulted in the repayment of the loan" means he failed to repay as agreed. This is a serious breach, and it logically explains why he was arrested.

Step 4: Answer The correct option is D. defaulted.

Tip: Remember the pairing "default on/in payment". Whenever a question involves loans, debts, or failure to pay, "default" is the keyword. Also, "deferred" means to postpone, while "defaulted" means to fail to pay.