Question

How do bank loans help the nation’s economy?

They ensure consumer spending and confidence.
They ensure the success of new businesses.
They allow businesses to expand and improve.
They allow consumers to quickly pay off debts.
Mark this and return

Answer 1

Correct answers:
- They ensure consumer spending and confidence. (Yes — credit lets consumers make purchases they otherwise couldn’t, supporting demand.)
- They allow businesses to expand and improve. (Yes — loans provide capital for investment, growth, equipment, and R&D.)

Incorrect:
- They ensure the success of new businesses. (No — loans help, but success depends on many factors.)
- They allow consumers to quickly pay off debts. (No — loans can be used for consolidation, but that’s not a primary economic benefit and doesn’t guarantee quick payoff.)