Could you tell me what crunch it is?

[Ilshat]

English Language Proficiency Tests, Advanced Level

ESL/EFL Test #717 "Recession and Financial Terms (2)", question 3

During the recession, there was a ......... crunch. Businesses weren't able to obtain financing easily.

(a) stock
(b) cost of capital
(c) bond
(d) credit

English Language Proficiency Tests, Advanced Level

ESL/EFL Test #717 "Recession and Financial Terms (2)", answer 3

During the recession, there was a credit crunch. Businesses weren't able to obtain financing easily.

Correct answer: (d) credit
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Сould you tell me what crunch it is? Many thanks in advance.

[Beeesneees]

A 'credit crunch' (also known as a credit squeeze or credit crisis) is a reduction in the general availability of loans (or credit) or tightening of the conditions required to obtain a loan fbecause of the financial conditions.
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Cheers m' dears!