Economics
Analyse the role of credit for development.
Money & Credit
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Answer
Credit plays a crucial role in a country’s development:
- Credit allows businesses to invest in new technologies, expand operations, and increase productivity. This leads to higher output, job creation, and economic growth.
- Access to credit enables entrepreneurs to start new ventures, fostering innovation and competition.
- Credit is used to finance large infrastructure projects such as roads, schools, and hospitals. These projects improve public services and contribute to long-term economic growth.
- Farmers can use credit to purchase seeds, equipment, and technology, leading to higher yields and more efficient agricultural practices.
- Credit enables families to invest in education, healthcare, and housing, improving their quality of life and economic potential.
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