Credit "is the most important part of the economy," according to Ray Dalio, because "it is the biggest and most volatile part." Just like normal transactions that take place between buyers and sellers, credit is created in transactions between borrowers and lenders. Some of the ways credit plays a role in stimulating the economy includes Question 4Answer a. giving the banks the ability to increase their money supply b. gives people the ability to buy things they normally cannot afford outright, like a car or a house. c. gives people the money to start a business, if they do not already have the funds