Recessions associated with a banking crisis tend to be more severe than other recessions because many businesses rely on credit to operate.

Question

Quizplus · Accepted Answer

During a banking crisis, banks may become reluctant to lend, which can lead to a credit crunch. This can make it difficult for businesses to access the credit they need to operate and invest, and can amplify the consequences of the recession on the economy.

Recessions Associated with a Banking Crisis Tend to Be More