Question

Governments providing interest free loans to target industry are called

Answer 1

Governments providing interest-free loans to target industry are called Federal Governments.

This initiative of providing interest-free loans may lead to the growth and development of the industries and this will as well lead to an increased economy of that given country.

I hope this further illustration helps you to understand why it is important to provide interest-free loans to industries.

Answer 2

Governments providing interest-free loans to target industry are called subsidy.

Explanation:

• The government provides incentives in the form of subsidies to the industries for promoting them.  

• The main objective of the government is to extend financial support in regards to their economic and social policies.  

• The subsidies can be in different forms like cash, interest-free loans, rent rebates, low-interest loans, and many other forms.  

• The producers or manufacturers are given the loans by offering payment to various factors of production or to the suppliers.