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.


Answer: B

Business

You might also like to view...

Amortized premium is computed annually when a bond is issued for other than its face value. For a bond issued at a premium, how will this component change as the bond approaches maturity?

a. decrease b. increase c. remain constant d. not enough information given to decide

Business

Errors in the research process that pertain to anything other than sampling are referred to as non-sampling errors

Indicate whether the statement is true or false

Business

Accountants are regulated by a variety of organizations. Match the following statements with the most directly related organizations. Organizations may be used once or not at all.Formed to improve standards of financial accounting for state and local government entities.

What will be an ideal response?

Business

The U.S. publishes the duty imposed by customs on products entering U.S. ports in the:

a. federal tariff listings b. tariff regulations c. tariff rules d. tariff postings e. none of the other choices are correct

Business