CBSE 2025 · Region 5 · Set 3 · Q26 · 3 marks
Explain the role of credit in the economic development of the country with example.
Marking-scheme solution
(i) Credit plays a vital role in the development of the country.
(ii) People require loans for various economic activities.
(iii) A cheap and affordable credit helps a poor farmer take up the process of agricultural production.
(iv) A manufacturer is able to setup and expand his business with the help of easy availability of credit.
(v) The tertiary sector like insurance, transportation, warehousing is able to provide services with the help of credit.
(vi) Availability of credit helps in generating employment and increasing GDP of the country.
(vii) Credit adds value to the total production of the country leading to the overall development of the economy.
Money and CreditLoan Activities of BanksUnderstandshort_answermedium
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CBSE Class 10 Social Science past-paper question from the 2025board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.