Question

How is credit essential for economic activities? Explain with examples.

Answer 1

The importance of cheap and affordable credit for the country's development:

1. Affordable credit would also end the cycle of the debt trap.
2. It enables more investment, which will lead to the acceleration of economic activities.
3. Cheap and affordable credit would lead to higher income.
4. Many people could borrow for a variety of needs.
5. It encourages people to invest in agriculture, set up businesses, set up small-scale industries, etc.