Question

class 10th
analyse the role of credit for development?

Answer 1

(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. It will further improve their standard of living and overall development.

Answer 2

The role of credit for development is described below.

• Credit plays an important and crucial role in the development as well as economic growth of a nation. Affordable and cheap credit is essential for the development of a nation.
• With the help of credit, people get help in buying houses. This way, more people stimulate to purchase houses.
• Economic conditions of poor people in a country also improve when credit, at reasonable rates, is available to them, thus, boosting the economy, which results in development.
• Credit enables as well as encourages businesses and firms to borrow more.
• Borrowing more results in the growth of a business, or the production increases in the economy.
• Thus, credit is important and essential for a country's development.

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