Post edited for clarity.

As I understand it, it's normal and expected to name other universities, especially if they're on a similar level. This is not meant to be a trick question or anything like that. 

I will look at it optimistically. It shows the range of schools you are applying to. If the "other" schools are competitive with the applied school, and your profile is really good, they will try to give you a better offer, so as to not lose you to those "other" schools.