(i) It helps in increasing economic activities of the country; thus, helps in its development.
(ii) If credit is made available to the poor people at reasonable rates, they can improve their economic condition. It will further improve their standard of living and overall development.
⭐️Mark as brainleist and rate me please ⭐️
2 votes Thanks 1
khadija3008
Credit plays a vital role in economic growth and development. Credit availability at cheaper rates of interest encourages the business or firms to borrow more. Borrowing more money will facilitate the growth of business or increase in production in the economy. So, credit supply is the key factor for economic development.
Answers & Comments
Verified answer
Answer:
(i) It helps in increasing economic activities of the country; thus, helps in its development.
(ii) If credit is made available to the poor people at reasonable rates, they can improve their economic condition. It will further improve their standard of living and overall development.
⭐️Mark as brainleist and rate me please ⭐️
Credit availability at cheaper rates of interest encourages the business or firms to borrow more.
Borrowing more money will facilitate the growth of business or increase in production in the economy.
So, credit supply is the key factor for economic development.