Question

How is credit a crucial role in rural economy?
OR
What is the role of credit in rural economy?

money and credit chapter 3 economics

Answer 1

credit is very important in rural economy because as we know that many people depend upon these credit which is given to them by the land owners or by the Co-operative setup In The villages it is very important for the prosperity small farmers and landless pigeons do not have money and for this they take a loan or credit from the banks if there is not anyone willing to give them loan they cannot Enterprise in their business nor do they can invest in it and for that investment they need money and that money they get from the banks are Cooperative or big money lenders who charge a high interest rate on that principal amount so it is important that credit should be given in the rural economy as well as the interest rate should be small so the farmers are not caught in the Deccan traps

Answer 2

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