NCERT Solutions for Class 10 Social Science History Chapter 3
Social Science Class 10 Economics
Money and Credit 3
Important NCERT Questions Based on new NCERT Books for Session 2022-2023
Questions No: 9
Analyse the role of credit for development.
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Credit which is available at reasonable interest rate plays a crucial role in the country’s development. The requirement for loans is in a huge number for various economic activities. The credit boosts the business and helps people to meet the regular expenses of production. This opens up opportunities in the market for people looking to setup a small business. Credit helps in expansion of one’s business, farmers can grow a variety of crops, procure equipment for farming, send their children for higher education etc. Students get a loan without collateral for higher education which again leads to the development of the nation. In this way, credit plays a vital role in the development of a country.
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Role of Credit for Development:
1. Economic Growth: Credit helps businesses grow by providing funds for investments, leading to more jobs and improved economic conditions.
2. Supporting Small Businesses: It helps small entrepreneurs start or expand businesses, encouraging innovation and creating more opportunities.
3. Reducing Poverty: Credit allows individuals from poorer backgrounds to start businesses or invest in education, helping them improve their lives and break the cycle of poverty.
4. Improving Farming: Farmers can use credit to buy better seeds and tools, increasing agricultural productivity and their incomes.
5. Building Infrastructure: Credit supports building roads, schools, and hospitals, which are crucial for overall development and improving living standards.
6. Financial Inclusion: Credit ensures that everyone, including those in remote areas, has access to banking services and financial opportunities.
7. Stability During Emergencies: It provides a safety net during tough times, allowing individuals and businesses to manage financial difficulties.
Credit is essential for development as it supports businesses, empowers individuals, and helps build a stronger and more prosperous society.