(a) What is a credit crunch? (b) Describe its effect on the corporate sector.

Question:

(a) What is a credit crunch?

(b) Describe its effect on the corporate sector.

Banking and Finance:

Banking and Finance is a division that involves acquiring and distributing funds to the general public in an economy. It ensures the availability of funds for the economy's survival, maintenance, and further growth.

Answer and Explanation: 1

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(a) A credit crunch is a sudden downfall in banks' lending activities due to the shortage or non-availability of sufficient funds. It often occurs...

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Banking System: Definition & Types

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Chapter 11 / Lesson 11
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Learn to define banking and the banking system. Learn to describe the components and types of the banking system. Discover the types of commercial banks.


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