Question

----------is a condition in which there is an immediate decline in the availability of loan or credit.

• A. Credit rationing
• B. Credit crunch
• C. Credit creation
• D. Credit absorption

Answer 1

Answer:

B. Credit crunch

A credit crunch occurs when there is a sudden decline in the availability of loans or credit from banks and financial institutions. It usually happens during financial crises or when lenders become cautious about lending due to high risk.