Question

'Credit has its own unique role for development'. Justify the statement with arguments.

Answer 1

It is through availability of cheap, affordable and timely credit that the development can be triggered

Credit has its own unique role for development because of following reasons :

(i) Cheap and affordable credit lead to higher incomes and many people could then borrow cheaply for a variety of needs.

(ii) With credit people could grow crops, do business, set-up small scale industries etc.