in class 10 economics ncert page 49, it is given " for these reasons banks and cooperative societies need to lend more. this would lea to higher incomes and many people could then borrow cheaply for a variety of needs. pls explain the connection between these 2 lines. and pls answer fast since my exams are approaching.

Dear student, 

The more banks and cooperative society lend, the money in circulation will increase and when banks and cooperative society increase their lending limits the credit gets available easily at minimum interest rate which in turn reduce the cost of borrowing and encourage prospective buyer to increase their borrowing for a variety of needs.


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