How does credit play a positive role class 10?

How credit plays a positive and negative role class 10?

Answer: There are two positive and negatives role of credit. credit helps to meet the Working capital needs of production. … in the case of high risk , credit pushes the borrower into a debt – trap . that is credit in this case pushes the borrower into a situation from which recovery is very painful….

What is the role of credit class 10?

Answer : Credit plays a crucial role in a country’s development. By sanctioning loans to developing industries and trade, banks provide them with the necessary aid for improvement. This leads to increased production, employment and profits.

Why do you think that credit plays a positive role in the situation of Swapna?

The credit helps him to meet the ongoing expenses of production, complete production on time and thereby increase his earnings. Credit, plays a vital and positive role in this situation. … Credit, instead of helping Swapna improve her earnings,leaves her worse off. She falls into a debt trap.

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How does credit play both positive and negative role?

there are two positive and negatives role of credit. credit helps to meet the Working capital needs of production. it helps in setting us new industries or trade in goods. in the case of high risk , credit pushes the borrower into a debt – trap .

What is the positive impact of credit?

Credit can be a powerful tool that helps you improve your finances, get access to better financial products, save money on interest, and can even save you from putting down a deposit opening utility or cell phone accounts. The benefits of a positive credit report and good credit score are extensive.

What is the role of credit?

Credit allows individuals and organizations to purchase items without having to make an immediate payment in cash. Banks use this system of credit to make loans. … When credit improves, the amount of cash a bank has to hold in reserves decreases, which in turn increases earnings.

What is credit why it is important class 10 Brainly?

Answer: The Credit refers to an agreement under which goods and services, or money is exchanged against a promise to pay later. This agreement is largely based on trust. Another definition of Credit refers to the money given by banks to its customer and the later has to pay it on time.

How is credit helpful for the country’s development?

Credit helps people to meet the ongoing expenses of production, complete production on time and thereby increase their earnings. Hence, it plays a vital and positive role in a country’s development.

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Why and how does credit play a vital role in any economy?

Credit plays a crucial role in a country’s development. By sanctioning loans to developing industries and trade, banks provide them with the necessary aid for improvement. This leads to increase in the production, profits and employment.

What is credit Why is it important?

Credit is part of your financial power. It helps you to get the things you need now, like a loan for a car or a credit card, based on your promise to pay later. Working to improve your credit helps ensure you’ll qualify for loans when you need them.

Is the role of credit for development?

Explanation: (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. … (iii) Credit helped in the development of secondary sector or manufacturing sector.