Credit Crunch (Noun)
Meaning
A state in which there is a short supply of cash to lend to businesses and consumers and interest rates are high.
Classification
Nouns denoting natural processes.
Examples
- The country was hit by a severe credit crunch that made it difficult for small businesses to get loans.
- The credit crunch led to a decline in consumer spending as it became increasingly difficult to get mortgages and credit cards.
- The government was forced to intervene in the financial market to alleviate the effects of the credit crunch.
- During the credit crunch, banks reduced the amount of credit they extended to customers and tightened lending standards.
- The credit crunch had a particularly severe impact on industries that relied heavily on financing, such as real estate and construction.