Question

Explain the importance of credit for economic development.

Answer 1

Credit is the most important part of the economy. ... Credit leads to an increase in spending, thus increasing income levels in the economy. This, in turn, leads to higher GDP (gross domestic product) and thereby faster productivity growth.

Answer 2

Answer:

Explanation:Credit plays a crucial role in a country's development :

It sanctions loans to developing industries and trade, banks provide them with the necessary aid for improvement. ... As it helps in increasing economic activities of the country; thus, it helps in its development.

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