Question

Describe the positive role of credit in development​

Answer 1

Answer:

(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.

Answer 2

Explanation:

Credit plays a vital role in economic growth and development.

Credit availability at cheaper rates of interest encourages the business or firms to borrow more.

Borrowing more money will facilitate the growth of business or increase in production in the economy.

So, credit supply is the key factor for economic development.