Question

what is the role of credit​

Answer 1

Answer:

• 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

✨ credit ✨

When your bank account is debited, it meansmoney is taken out of the account. The opposite of a debit is a credit, in which case money is added to your account.

⏩role of credit

• Credit allows individuals and organizations to purchase items without having to make an immediate payment in cash.
• Banks use this system of credit to make loans.
• The more cash the bank has on hand or in reserve, the more money it can loan to borrowers.
• The amount depends on the number of loans obligated to customers and the creditworthiness of the borrowers.
• When credit improves, the amount of cash a bank has to hold in reserves decreases, which in turn increases earnings

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