credit crunch

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Word: Credit Crunch

Definition: A "credit crunch" is a situation where there is not enough money available for banks and other lenders to give out loans to businesses and people. This usually happens when interest rates are very high, making it difficult for people to borrow money.

Usage Instructions:

• Part of Speech: Noun
• Context: Use "credit crunch" when talking about economic situations, banking, lending, or financial difficulties.

Example:

• "During the credit crunch, many businesses struggled to get loans to operate, leading to layoffs and closures."

Advanced Usage:

• You might hear "credit crunch" in discussions about economic policies or financial crises. For example, "The government implemented measures to ease the credit crunch and stimulate growth."

Word Variants:

• Credit (noun): Money that a bank lends with the expectation of repayment.
• Crunch (noun): A difficult situation or a moment of stress; in this case, referring to the scarcity of credit.

Different Meanings:

• "Crunch" can also refer to a situation where something is under pressure or a critical moment, like "time crunch" meaning a limited amount of time to complete something.

Synonyms:

• Financial crisis: A more general term that can refer to any situation where the financial sector is in trouble.
• Liquidity crisis: This refers specifically to a lack of cash flow in the market.

Idioms and Phrasal Verbs:

• "Tighten the belt": This idiom means to spend less money, often used during economic difficulties.
• "Cash flow problem": A situation where a person or business does not have enough cash to meet their expenses, similar to a credit crunch.

Summary:

A credit crunch is a challenging economic condition where banks are hesitant to lend money due to high interest rates and low cash availability.

Academic

Noun

1. a state in which there is a short supply of cash to lend to businesses and consumers and interest rates are high

Synonyms

• liquidity crisis
• squeeze