Question

Describe the vital and positive role of credit with examples

Answer 1

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 :(a) Credit helps people from all walks of life in setting up their business, increase their income and support their families.(b) To some people loan helps a lot in constructing their houses and get relief from monthly rent.(c) To others it helps a lot in raising their standards.

Answer 2

Credit plays a vital and positive role in following ways -->

1) Credit helps people in meeting the ongoing expenses of production.
2) It also helps people to complete tasks in given period of time.
3) It helps people to earn more profits.
4) By earning profits, the standard of living of people rises