Some schools ask which other schools are you applying to, including reasons why you do so. How would you answer?
Yes, I believe that you should be as honest as you can in your application, but still, I can see drawbacks and questions:

1) If your target school knows it is best ranked comparing with other schools you are applying to, it has no reason to offer you a scholarship, or only in a small amount
2) if your target school knows it is worse ranked comparing with other schools you are applying to, it could be "not happy" as being only back-up school for you
3) Or do you think (or do you have such experience) that the answer to this question is not important for decision?

Your tips? What do you think? Would you refute to answer this question for above reasons?
Thank you!

Yes, it's a bit tricky, but I think that you need to clearly articulate the reasons why you'd be a good fit at their particular school. They know you're applying to other schools, but they want to know why you think they're school is right for you.

Also, you can be strategic - maybe if you say that you're applying for a "reach" school, the lower-ranked schools might be more likely to offer you scholarships.

Generally, assume that this question is an attempt to work out how you make business decisions, not a request for you to boost the school's ego.

I think you should try to tell the truth: it's easier to remember. You are applying to multiple schools because you understand that your admittance is not assured at any one school. Each school has pluses and minuses. If you're applying for financial aid, remember that there is a trade-off there (www.find-mba.com/board/37055) which you can also discuss intelligently.

Yes, I undestand that they want me to clearly articulate why their school, but I can express it in the special app question, there must be something more about this tricky question I think..

"if you say that you're applying for a "reach" school, the lower-ranked schools might be more likely to offer you scholarships"

But if I am applying to a higher-ranked school, this school hardly offers a scholarship when needn't "to fight" with other top ranked school.

Of course it's true, a well-chosen stretch school will not offer you unusually high financial aid because it knows you will rationally accept it without aid. And lower-ranked schools know they need to offer more to get strong candidates.