Economics · Credit Squeeze
Under which condition is a credit control situation specifically described as a credit squeeze?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1When the credit control policies are highly restrictive, making borrowing extremely tight.✓
- 2When the central bank completely stops printing currency notes for more than a decade.
- 3When commercial banks offer interest-free loans to every citizen without verification.
- 4When the government dissolves the central bank and removes all market regulations.
Correct answer
When the credit control policies are highly restrictive, making borrowing extremely tight.
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