Question

Explain the importance of credit for economic development of the country? answer

Answer 1

Answer:

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.

Explanation:

hope this helps...

Answer 2

Credit is important as it helps in the growth and development of the economy.

• The most crucial aspect of the economy is credit.
• Credit causes people to spend more, which raises the economy's revenue levels.
• As a result, GDP (gross domestic product) rises, resulting in quicker productivity development.
• The access to credit at lower interest rates enables firms and firms to borrow more.
• Borrowing more money can help businesses expand and enhance productivity in the economy.

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