How important in credit to a nation economic?



Answer:
Credit is just as important as money itself. Credit is really just the reallocation of money across time. I lend to you, so you can consume or invest today, rather than waiting to raise the money in the future. Likewise, I get to consume later when you pay me back with interest.

Because we are both willing to engage in this transaction, we must be both better off! Therefore the economy is benefiting.

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