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Difficulty: EasyFactors Affecting the Growth of Commerce

Which of the following factors directly promotes the growth of commerce by providing credit facilities, payment clearance, and safe custody of business funds for traders?

  1. Development of modern commercial banking facilitiesAnswer
  2. B
    Confining commercial activities strictly to the buying and selling of goods
  3. C
    Expansion of personal direct services such as domestic hair styling
  4. D
    Exclusive reliance on primary raw material extraction

Answer

Development of modern commercial banking facilities
The development of modern commercial banking facilities directly encourages the growth of commerce by offering financial services such as credit expansion, safe storage of trading capital, and convenient money transfer services.

Step-by-Step Solution

1
Analyze the financial aids required for commercial expansion.
Traders require secure money deposits, loans, credit instruments, and financial transfer channels.
Large-scale commercial operations cannot thrive on cash transactions alone without formal banking infrastructure.
2
Identify which option represents a key commercial auxiliary that drives growth.
Modern commercial banking facilities serve as a critical auxiliary service that aids trade and fosters economic growth.
Access to banking services facilitates fast, safe, and scalable commercial transactions across regions.

Key Concept

Factors Affecting the Growth of Commerce
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Factors Affecting the Growth of Commerce

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