role of credit in nation develope
Answers
Explanation:
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.
Development is sustained by a proper credit policy. By giving loans to agriculture, industry and trade, banks provide them with the necessary funds for carrying on their business without problems relating to finance. This results in increased production and services, more employment and profits.
Understanding credit
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. If credit is used to purchase productive resources, it helps in economic growth and adds to income.
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Answer:
1. Credit plays a crucial role in a nation development.
2. It provides sufficient cash to a farmer to meet his farming requirement.
3. It helps a consumer to meet his congabilition requiremen.
4. It helps a producer to meet his investment need.
5. It also helps small traders to expand their buisness.
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