Which of the following is true of the credit crunch that occured in the U.S.economy in the early 1990s?
A)The credit crunch affected only big business firms.
B)Small business firms that were unable to obtain bank loans were most affected during the credit crunch.
C)The main reason behind the credit crunch was the dramatic decline in housing prices.
D)The government bailed out many of the financial firms that were affected by the credit crunch.

Question

Quizplus · Accepted Answer

The credit crunch in the early 1990s affected small business firms the most as they were unable to obtain bank loans. Large business firms were also affected but not exclusively. The decline in housing prices and the savings and loan crisis were some of the factors contributing to the credit crunch. The government did not bail out many of the financial firms during this period.

Which of the Following Is True of the Credit Crunch