What event allowed U.S.-style subprime mortgages into Canada?
A) The Canadian government allowing U.S. companies into the Canadian mortgage insurance market.
B) Lobbying by Canadian financial institutions.
C) Changes to the Bank of Canada's role in financial regulation.
D) CMHC relaxing regulation on the mortgage market.

Question

Quizplus · Accepted Answer

The Canadian government allowed U.S. companies into the Canadian mortgage insurance market, which led to the introduction of U.S.-style subprime mortgages into Canada. These mortgages were packaged into mortgage-backed securities and sold to investors, contributing to the global financial crisis in 2008.

What Event Allowed U.S.-Style Subprime Mortgages into Canada