There are many reasons for the financial crisis in 2007. The most significant event closely associated with this crisis is ____.

Question

Quizplus · Accepted Answer

The U.S. real estate bubble refers to the housing market boom during the early 2000s, in which many Americans took out large mortgages to purchase homes. These mortgages were often given to individuals who could not afford them, and were offered with adjustable interest rates which later caused many borrowers to default on their loans. This led to a collapse of the housing market, which then rippled through the financial industry and caused widespread economic damage. While all of the options listed may have played a role in the financial crisis, the U.S. real estate bubble is seen as the most significant contributor.

There Are Many Reasons for the Financial Crisis in 2007