Which of the following contributed to the financial crisis of 2008?
A) The housing price boom (2002-2005), followed by a housing price bust (2007-2008).
B) A sharp reduction in stock prices in 2008.
C) A sharp increase in the price of crude oil from January 2007 to mid-year 2008.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the factors listed contributed to the financial crisis of 2008. The housing price boom and subsequent bust led to a collapse of the subprime mortgage market and housing-related securities, which had a ripple effect on the entire financial system. The sharp reduction in stock prices in 2008 also led to a further loss of confidence in the financial system and contributed to the overall economic downturn. Additionally, the sharp increase in the price of crude oil in 2007-2008 exacerbated the economic situation by increasing inflationary pressures and reducing consumer spending.

Which of the Following Contributed to the Financial Crisis of 2008