Question

what is the role of credit in UDCS?

Answer 1

If credit is used to purchase productive resources, it helps in economic growth and adds to income. Credit further leads to the creation of debt cycles. Banks are majorly impacted by credit growth in an economy. This is because their primary business is to provide loans to customers in return for interest payments.

Answer 2

If credit is used to purchase productive resources, it helps in economic growth and adds to income. Credit further leads to the creation of debt cycles. Banks are majorly impacted by credit growth in an economy. This is because their primary business is to provide loans to customers in return for interest payments.