Why is credit a crucial elements in the eco development?
Answers
Credit is a crucial element in the economic development. ... Credit plays a major role in the development of a country of creating better facilities for agricultural and industrial activities. Credit helps people from all walks of life in setting up their business and increase their earnings
Answer:
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Explanation:
Credit plays a crucial role in economic life. Some time it plays a negative role some time positive.
Positive Role:
1. Sometimes credit helps to increase earnings makes the person better than before.
2. Credit helps the person to enhance his business his economic condition.
Negative role:
1. Some time person borrow money to increase his business or for personal use.
2. If the borrower fails to pay back the borrowed money, it pushes the person in to bank trap.
To repay the loan the borrower has to sell his land or the lender detained the collateral.