Question

Explain the role of credit for economics development​

Answer 1

Answer:

Credit plays a crucial role in a country's development. By sanctioning loans to developing industries and trade, banks provide them with the necessary aid for improvement. This leads to increased production, employment and profits.

Answer 2

Answer:

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.