Why do you think credit is so important to so many people? What will

QUESTION

Why do you think credit is so important to so many people?

What will be an ideal response?

ANSWER

Answer: Credit is important because most ordinary people can’t buy big-ticket items (cars, houses, etc.) without credit. Companies, too, have big-ticket items for which credit is often needed, such as land, buildings, equipment, etc.
Explanation: Credit makes it possible for ordinary people and companies alike to purchase big-ticket items when they do not have the cash on hand to do so.