Question

What is the importance of credit creation in developing countries?

Answer 1

Answer:

hey mate

Explanation:

here is your answer

credit creation is the part of financial power it helps you to get the credit that you need like a loan for a car or credit card based on your promise to pay later

lack of cash: the total amount of cash available to the banking system and limits the volume of credit that can be created

the bank must keep a certain percentage of cash reserve

The total volume of credit cannot ordinarily be larger than the total amount of cash available multiplied by the customary reserve-ratio.

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Answer 2

Answer:

Hey mate here is your answer

Explanation:

It is well established that access to credit plays an essential role in the development of the world's economies. Increasing the availability of credit allows investment capital to be used by individuals and businesses, which leads to growth in economic activity.

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