What is a credit boom?
A) An explosion in a credit cycle, which can increase or decrease lending in the short-run
B) Essentially a lending spree on the part of banks and other financial institutions
C) When credit card receivables rise due to low initial interest rates
D) The signal of the end of a credit spree, with credit contracting rapidly

Question

Quizplus · Accepted Answer

A credit boom is essentially a lending spree on the part of banks and other financial institutions. It is a period of time when there is a significant increase in the amount of credit available in the economy, leading to a surge in borrowing and spending. This can lead to economic growth and expansion in the short term, but it can also create a bubble that eventually bursts, leading to a credit crunch or recession.

What Is a Credit Boom