CBSE Class 10 Economics Question 5 of 13

Money and Credit — Question 9

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Question 9

Analyse the role of credit for development.

Answer

Credit plays a crucial role in a country’s development:

  1. Credit allows businesses to invest in new technologies, expand operations, and increase productivity. This leads to higher output, job creation, and economic growth.
  2. Access to credit enables entrepreneurs to start new ventures, fostering innovation and competition.
  3. 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.
  4. Farmers can use credit to purchase seeds, equipment, and technology, leading to higher yields and more efficient agricultural practices.
  5. Credit enables families to invest in education, healthcare, and housing, improving their quality of life and economic potential.