1. Home
  2. |  
  3. Bank Recruitment |  

Banking Term: Credit Squeeze

Jan 31, 2015 16:57 IST

    Credit Squeeze is a situation in which bank disagrees in issuing new loans and credit  due to risk of default cases of the borrower. This type of situation arises during the times of recession and financial instability. It adversely affect job creation and down economic growth of the country. It is another name for Credit Crises.

    Question

    Credit crunch stands for

    a) The central bank stops acting as lender of last resort

    b) Some retail banks go bankrupt.

    c) The central bank stops issuing money.

    d) Banks are unwilling to trade assets from each other

    e) None of these

    Answer: d

    Latest Videos

    Register to get FREE updates

      All Fields Mandatory
    • (Ex:9123456789)
    • Please Select Your Interest
    • Please specify

    • ajax-loader
    • A verifcation code has been sent to
      your mobile number

      Please enter the verification code below

    This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK
    X

    Register to view Complete PDF