Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:
Which of the following encourages investment, growth and development and acts as booster to consumer demand?
Options:
capital formation
inducement to innovations
debit cards
credit cards
Correct Answer:
credit cards
Explanation:
Credit cards boosts the customer demand. When credit grows, consumers can borrow and spend more, and enterprises can borrow and invest more. A rise of consumption and investments creates jobs and leads to a growth of both income and profit.