Question

how will you justify that credit is a circular element in economic life

Answer 1

credit is a crucial element in the economic life. because credit plays a major role in the development of a country of creating better facilities for agriculture and industrial activities

Answer 2

Answer:

HERE IS YOUR ANSWER DEAR..

Explanation:

Credit plays a crucial role in economic life. Some time it plays a negative role some time positive.

Positive Role:

1. Sometimes credit helps to increase earnings makes the person better than before.

2. Credit helps the person to enhance his business his economic condition.

Negative role:

1. Some time person borrow money to increase his business or for personal use.

2. If the borrower fails to pay back the borrowed money, it pushes the person in to bank trap.

To repay the loan the borrower has to sell his land or the lender detained the collateral.