Economics A-Level
Credit crunch
What Credit crunch means in Economics A-Level, as defined for AQA.
Definition of Credit crunch
Check what you remember
Read the wording for your board, then hide it and explain Credit crunch in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
A situation where businesses cannot access loans for investment and consumers cannot secure mortgages.
Topics that use Credit crunch
- The regulation of the financial system (AQA A-Level)
Related terms
- Bank run
- Capital ratio
- Consumer protection
- Financial stability
- Insolvency
- Liquidity ratio
- Macro-prudential policy
- Macroprudential regulation
Using Credit crunch in the exam
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