Question

'Cheap and affordable credit is crucial for the country's development.' Explain.
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Answer 1

Answer:

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

Explanation:

Answer 2

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1. Greater expense of getting implies a bigger piece of the income of the borrowers is utilized to reimburse the credit. Henceforth borrowers have less salary left for themselves.

2. In specific cases the high financing cost of obtaining can imply that the sum to be reimbursed is more prominent than the pay of the borrower. This could prompt expanding obligation and obligation trap. For these explanation banks and helpful social orders need to loan more.

3. This would prompt higher livelihoods and numerous individuals could then get inexpensively for an assortment of necessities.

4. They could develop crops, work together, set up little scope ventures and so on.

5. They could set up new ventures or exchange merchandise.