How is credit essential for economic activities? Explain with examples. 3

i. Credit helps to set up Industries.

ii. Credit helps to start businesses.

iii. It helps to improve the standard of living of the people.

iv. In rural areas credit helps in the development of agriculture by providing funds to farmers to buy seeds, fertilizers, expensive pesticides etc.

v. It helps to generate employment.

vi. Examples may be taken from the story of Salim or Students may provide examples from their day to day life.