What Is a Credit Boom

question 9

Multiple Choice

What is a credit boom?

• A) An explosion in a credit cycle, which can increase or decrease lending in the short-run
• B) Essentially a lending spree on the part of banks and other financial institutions
• C) When credit card receivables rise due to low initial interest rates
• D) The signal of the end of a credit spree, with credit contracting rapidly

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Definitions:

Bucked Head

The result of a fastener, particularly a rivet, being deformed or expanded at one end to secure it in place.

Countersunk

A method of setting screws or bolts in which their heads sit flush with or below the surface of the material, often used for a neat finish or in applications where a smooth surface is necessary.

Even Radius

A term describing a curve or surface where all points are equidistant from a central point, typically referring to the design and manufacture of components or spaces.

Pressure Protection Valve

A normally closed, pressure sensitive control valve. Some are externally adjustable. Can be used to delay the charging of a circuit or reservoir or to isolate a circuit or reservoir in the event of a pressure drop-off.