Question

20. What is credit? How does credit play a vital and positive role? Explain with an example


answer like 5 mark.......​

Answer 1

Answer:

Credit' refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment. Credit plays a vital and positive role as:

Explanation:

(i) Credit helps people from all walks of life in setting up their business, increase their income and support their families.

(ii) To some people loan helps a lot in constructing their houses and get relief from monthly rent.

(iii) To others it helps a lot in raising their standards.

(iv) Example of Salim, The credit helps him and he is able to increase his earnings.