Question

Analyse the role of credit for development.​

Answer 1

Answer:

Explanation: (i) It helps in increasing economic activities of the country; thus, helps in its development. (ii) If credit is made available to the poor people at reasonable rates, they can improve their economic condition. ... (iii) Credit helped in the development of secondary sector or manufacturing sector.

Answer 2

Answer:

Credit plays a crucial role in a country's development. By sanctioning loans to developing industries and trade banks provide them with the necessary aid for improvement.

Credit plays a crucial role in a country's development. By sanctioning loans to developing industries and trade banks provide them with the necessary aid for improvement. This leads to increased production employment and profits. However caution must be exercised in the case of high risks so that losses do not occur.

Credit plays a crucial role in a country's development. By sanctioning loans to developing industries and trade banks provide them with the necessary aid for improvement. This leads to increased production employment and profits. However caution must be exercised in the case of high risks so that losses do not occur. This advantage of loans also needs to be manipulated and kept under an administrative hold because loans from the informal sector include high interest rates that may be more harmful than good.

Credit plays a crucial role in a country's development. By sanctioning loans to developing industries and trade banks provide them with the necessary aid for improvement. This leads to increased production employment and profits. However caution must be exercised in the case of high risks so that losses do not occur. This advantage of loans also needs to be manipulated and kept under an administrative hold because loans from the informal sector include high interest rates that may be more harmful than good. For this reason it is important that the formal sector gives out more loans so that borrowers are not duped by moneylenders and can ultimately contribute to national development.