All of the following are evident during a credit crunch except:
A) the Fed tightens money supply
B) higher business requirements for funds
C) decrease in interest rates
D) massive withdrawals of savings deposits

Question

Quizplus · Accepted Answer

During a credit crunch, interest rates typically increase, making credit more expensive and harder to obtain. The Fed may tighten money supply to control inflation and stabilize the economy, and businesses may face higher requirements for obtaining funds. Massive withdrawals of savings deposits may also occur as people panic and try to secure their money. Therefore, choice C is the opposite of what typically happens during a credit crunch.

All of the Following Are Evident During a Credit Crunch