Question

What is credit? Explain with an example, how credit plays a vital and positive role for development.(All India - 2014)

Answer 1

Answer:

credit- agreement to purchase goods or service with Express of promise to pay for it later

Explanation:

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 increase in the production, profits and employment

Answer 2

Answer:

HERE IS YOUR ANSWER DEAR...

Explanation:

1. Credit meets the working capital for production.

2. Credit helps the producers to meet the ongoing expenses of production.

3.Farmers and industrialists need credit to expand their business and to purchase new tools and equipments.

4. With the help of credit a person can purchase a house, bike, car and other house hold implements.