Social Sciences, asked by Raj8269, 1 year ago

why is credit to a crucial element in the economic development

Answers

Answered by meghana68852
10
Credit is a crucial element in the economic development. Cheap and affordable credit plays a crucial role for the country's development. ... Loans and credits help middle class and lower class people to bring about major changes in their lives such as buying a car, constructing a house and etc.
Answered by nasirulhaq6595
1

Answer:

HERE IS YOUR ANSWER DEAR...

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.

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