Question

1.Why is cheap and affordable credit important for a country’s development? Explain with

reasons.
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Answer 1

Answer:

Cheap and affordable credit is crucial for the country's development due to the following factors:

More lending would lead to higher incomes and encourage people to invest in agriculture, engage in business and set up small scale industries.

Cheap credit means more income would be left with the borrower to reinvest rather than return as interest. This leads to acceleration of economic activity.

Cheap credit would also allow weaker sections of society to enter formal sector of lending and rid them of exploitation at the hands of informal moneylenders. Thus, it may improve the economic condition of the poor and landless.

Answer 2

Answer:

cheap and affordable getting important for country development because of the following reason:

1. it would remove the cycle of bent trap
2. more landing would lead to higher income and increase people to invest in agriculture
3. cheap credit would increase the acceleration on economic activity
4. cheap rates would also allow bigger section of society to assist from a sector on landing and getting rid from informal money lenders
5. cheap and easy terms of credit would inspire better investment in technology has increased competition