0
Having credit enable people to purchase items at a time they otherwise couldn't afford. For instance, if I can buy a car now on credit I am helping to employ people today who have had to get the raw materials, manufacture, transport and sell me the car. Additionally, I have to keep working to pay off the car and there are all those who finance the car and repossess it if I can't pay it off. Multiply that over thousands of consumers and the economy activity which means growth. If I have to save that money it may take me years to get that money together.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
How does credit contribute to the growth of the economy?
no way hosay! :)
What is a macro-credit analysis?
Macro means large as in "The Economy as a whole" and credit analysis means the ability of institutions and prople overall to get credit, to honor their commitment to pay back in a timely manner and the extent to which current and expected returns are positive or negative to present economy and future growth of the economy. Sort of intuitive answer.
What factors affect your current financial position?
Overhead expenses, the economy, and poor credit.
What are the differences between quantitative and qualitative credit control measures in banks?
The main difference between the general and selective credit control methods is that the former influence the cost and overall volume of credit granted by banks. They affect credit related to the whole economy whereas the selective controls affect the flow of credit to only specified sector of the economy, wherein speculative tendency and rising trend of prices, due to excessive bank credit, is noticed.
Credit cards with 5000 limit with no credit check?
I'm not sure you are going to find that in this current economy. However if you have bad credit there is a bank that will help you improve your credit and I know people that have got approved with a credit score of 400. It's First Premier Bank Credit Card.
How does credit make the economy grow include circular flow?
The monetary flow in a given economy as a result of the access to the credit makes the economy grow which includes the circular flow.
What are the advantages of VAt?
make your economy grow faster....and to supply the needs of the people..also to increase the fund of economy
Why push the walmart credit card when economy is so bad?
It doesn't make a difference to Wal-Mart or any other credit card company what the status of the economy is. They would love to get people with good credit ratings to use their cards. They make money when people use them. The more people that use the credit cards, the more opportunity to make money they have. There is some risk that people will use them and not pay them off, but there is still value involved.
What does the economy need to improve on?
CREDIT
Why did Hamilton believe the US needed to pay off its debt?
He said "Credit is the whole thing". WIth credit, a nation can acquire capital when needed to grow the economy or to defend itself. Without credit, debt stagnates the economy and doesn't earn the respect of other nations, which in turn tempts them to attack or take advantage of a nation's weakness. To develop good credit, the lenders must be convinced that debts will be paid back. Hamilton was right. The U.S. became respected and the economy benefited from the bank notes offered.
Is a credit card a type of money in the economy?
Credit is a type of money in the economy. It is a form of temporary currency that is used to buy goods and services.
What is different about interest rates or price credit from other prices in the economy?
what is different about interest rates, or price of credit, from other prices in the economy
Did the Aztecs and incas sacrifice people for there economy?
they sacrifice people to please gods, they thought when they kill people the sun will raise which make the crops grow ....which make them have a lot of crops they can sell so i think it helps in economy.
advantages of subsistence economy?
There is essentially no benefit to a subsistence economy, other than that it has ample room to grow. Even that is a backhanded compliment, though.
How does credit contribute to the growth of the economy?
no way hosay! :)
What advantage did the location of meroe offer to the kushites?
The location of meroe helped the kush's economy grow
What is the importance of credit in your economy?
Credit enables the individuals and firms to purchase the important inputs for the production. Generally one businessman has not sufficient amount for the business. So credit is very useful for the business.
